Page 1693 - Week 05 - Tuesday, 4 May 2010
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medium term. In 2010-11, when we expect the Commonwealth to start to restore its own budget position, moderation in the growth of the ACT’s State Final Demand is expected.
However, with the global and national recoveries happening earlier than previously expected, the ACT economy is expected to benefit, through a recovery in household wealth as well as in consumer and business confidence.
The forecast for State Final Demand (SFD) in 2009-10 has improved considerably to 3¾ per cent compared to the original budget forecast of 2 per cent. The forecast for Gross State Product (GSP) for 2009-10 now is growth of 1 per cent, compared to the budget forecast of ½ per cent.
Unemployment is currently at 3.8 per cent, a figure that has remained more or less static through the 18 month downturn period. This is among the lowest in the country.
Combined with solid population growth in Canberra, and the targeted investment of the ACT Government, we expect to sustain the momentum of our local economy.
Budget Plan
Mr Speaker, in the 2009-10 Budget, the Government adopted a Budget Plan to return the budget to surplus over a period of seven years.
Towards the aims of the Budget Plan we readjusted our spending and achieved savings.
However, Mr Speaker, we did not make sharp adjustments and we maintained our investment in vital community services and infrastructure and supported business confidence, a strategy also employed by the Commonwealth and most other Australian jurisdictions. This approach was broadly endorsed across our community and allowed us to support our local economy and our growing city through a strong and targeted capital investment program.
This approach has paid dividends to our local economy and has assisted us in achieving the small surplus of $54.2 million expected for 2009-10.
Mr Speaker, our Budget Plan was designed to be flexible and to be able to respond to changing circumstances and adjust to external factors.
The revenue outlook has improved since the last Budget, with the increase in the GST pool, housing market revenue and income from financial assets. The underlying revenue, however, will remain flat over the three years from 2007-08 to 2010-11.
Mr Speaker, in this Budget we are continuing our response to the effects of the global financial crisis. Our savings strategy going forward will continue our Budget discipline and produce efficiencies. These are essential to our plan to return to surplus.
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