While they are expecting dire news in the Budget, they say the economy is much larger and more diverse now, as a direct result of John Howard's "scorched earth" Budget that cut 30,000 jobs in three years.

The sub-text of their positions is they do not wish media reporting of the job cuts to further dampen consumer spending, when the ACT is already struggling with thousands of workers being displaced.

The overall size of the federal public service has been restored to its pre-1996 levels, largely due to Mr Howard's rapid expansion of ASIO and the Australian Federal Police, after the 9/11 terrorist attacks.

The Australian Public Service Commission says 40 per cent of its 163,700 workforce is based in Canberra.

ACT Chief Minister Katy Gallagher said on Monday the post-Budget fall-out in Canberra would be quite different to 1996.

"We have a very much larger economy, a much larger population, a much stronger private sector, much stronger export-oriented industries, in a sense the world economy has changed dramatically in that time," she said.

"So I’m not going to stand here and say it’s all doom and gloom, I don’t think that is the case."

Ms Gallagher said around 6000 of the 15,000 jobs forecast to be lost in the Commission of Audit could come from Canberra.

"So there are disproportionate job losses here ... but if they are shifting the focus into the private sector and away from government employees, there are opportunities for us there.

“I don’t think it is a doom or gloom scenario but it’s going to be pretty challenging times.

"The strength that we have here is that we usually get together pretty quickly and work out a unified position and go and knock on the door of the prime minister.

“Canberra is always going to be a government town ... they are our BHP, they are our Holden.

"Even though we will see some changes on the fringes, we are going to be an economy that relies on government work ... we should be OK with that, that’s why the city was built.

“I am very pleased with the work we’ve been doing in supporting diversification within the private sector."

ACT Chamber of Commerce and Industry CEO Andrew Blyth pointed to the planned investments by IKEA and a Canberra computer animation academy of $46 million as evidence of a strong local economy.

"We are a lot stronger and more diverse [than in 1996]," he said.

"There are many challenges facing the ACT, it is a volatile economy but I think out of this will come many opportunities for the private sector to grow.

"That is a good thing because we are moving away from being solely reliant on government.

"Having said that, government is still a big part of this town but we have a strong, visible and active private-sector presence in Canberra.

"What you will see from this budget are opportunities for the private sector to take up the running of government programs and potentially doing them better, more efficiently and more effectively and more targeted."

Mr Blyth said the government and the private sector needed to keep working on diversifying the economy.

"The next 12 to 18 months will be tough but we will come out the the other side, I think, a lot stronger than even today," he said.

Canberra Business Council CEO Chris Faulks said the hit on Canberra would not be as bad as 1996.

"The economy is more mature, the private sector is more robust and mature and we have a lot more businesses that sell goods to the rest of Australia and overseas," she said.

"In addition to that, the large number of baby boomers in the public service will potentially come out on voluntary redundancies and be reasonably well off with superannuation so they will be less likely to go on to the unemployment queues.

"Because of that we don't think the situation this time around will be as bad."

The council believes the budget cuts will provide opportunities for the private sector.

"The private sector will often be better placed to deliver services more efficiently than the government," she said.

"So we are working on that basis and we are encouraging the business community in Canberra to be ready for those opportunities that we see coming."