The ACT government's mid-year budget update reveals a significant budget deficit, primarily driven by increased healthcare spending. The Treasurer acknowledges the need for 'tough decisions' and savings measures to address the financial challenges.
The ACT government's mid-year budget update reveals a concerning deficit of $971.7 million for the 2024-25 fiscal year, a significant increase from the initially predicted $624.1 million. ACT Treasurer Chris Steel attributed this blow-out primarily to a surge in demand on the territory's public health system, leading to increased healthcare spending. The government faces pressure to implement 'tough decisions' and explore savings measures to address this financial strain.
Steel acknowledged the 'significant budget pressures' the ACT is experiencing, stating that the strong economy is not enough to offset the territory's fiscal challenges. While he highlighted positive economic indicators such as robust labor market growth and wage increases, he stressed the need for discipline and strong economic management to navigate the situation. He emphasized that further 'difficult decisions' will be necessary in the upcoming budget cycle. The government has already announced some healthcare system savings, but Steel indicated that more measures are forthcoming. He expressed concern about the unsustainable trend of double-digit increases in healthcare expenditure, stating that the current level of spending is uncertain.Despite the looming 'tough decisions', Steel remained tight-lipped about potential job cuts, stating that the government will be reviewing the entire budget. However, a leaked draft proposal revealed that the ACT government is considering a hiring freeze on non-essential and non-frontline positions within the public service. Opposition Leader Leanne Castley criticized the budget outlook as 'amazing mismanagement' of taxpayer funds, accusing the Labor government of failing to disclose the true state of the budget before the recent election. She claimed that the government's mismanagement of public service budgets has cost Canberrans hundreds of millions of dollars. The government maintains its objective to return to a budget surplus in 2026-27, with a projected surplus of $51.4 million. However, this figure is smaller than the previously anticipated $79.7 million
BUDGET DEFICIT HEALTHCARE SPENDING ACT GOVERNMENT ACT TREASURER JOB CUTS SAVINGS MEASURES
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