ACT: Territory's $36 M mini-budget to stabilise economy: Labor

AAP General News (Australia)
12-09-2008
ACT: Territory's $36 M mini-budget to stabilise economy: Labor

Eds: Reissues to change 5th par to read the government is looking to "set aside" $36
million in 2008-09, instead of "spend".



By Julian Drape

CANBERRA, Dec 9 AAP - The ACT government will pump an extra $36 million into the territory's
economy to stabilise it in the wake of the global financial crisis.

In announcing the mini-budget on Tuesday, Treasurer Katy Gallagher said the ACT economy
remained strong but families were hurting as a result of deteriorating national and international
conditions.

"The territory's economy remains robust but we are not immune to the impacts of the
global financial crisis and the moderating Australian economy," Ms Gallagher told the
ACT parliament.

"We are undertaking responsible and responsive initiatives to help stabilise our economy
against these global impacts."

While the government is looking to set aside an additional $36 million in 2008-09,
the impact on the budget bottom line will be just $16.2 million "as a result of commonwealth
offsetting revenue", Ms Gallagher said.

The ongoing impact is expected to be $4.3 million in 2009-10 rising to $4.6 million in 2011-12.

Treasury estimated a surplus of $73 million for 2008-09 prior to the October election
that saw Chief Minister Jon Stanhope win an historic third term.

But the government says the global downturn could result in a $30 million shortfall
in GST revenue and a significant reduction in investment returns.

If, or when, the territory will slide into deficit as a result should be clearer after
the December 23 fiscal mid-year review.

The mini-budget includes $2.5 million in relief to carers and volunteers, $2.1 million
in direct grants to school parent groups and $1 million in emergency relief to families.

But the biggest portion is $9.7 million for the new Department of Environment, Climate
Change, Energy and Water.

Other initiatives are aimed at increasing accountability and transparency measures
in the assembly.

The Liberal opposition moved an amendment to Labor's budget legislation that would
see it referred to the public accounts committee for an urgent inquiry.

Debate was adjourned with a vote expected on Thursday.

AAP jcd/kms/de

KEYWORD: BUDGETACT (REISSUES)

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