The ACT Treasurer, Andrew Barr has also flagged fast-tracking of urban infill development, describing himself as ‘‘an enthusiastic supporter of cutting green tape.’’

Mr Barr said conditions imposed by the federal Environment Protection and Biodiversity Conservation had ‘‘challenged’’ urban development, and created unnecessary duplication of environmental regulations.

In the 2012-13 ACT budget, government expenditure will be cut by $180 million over the next four years, with Territories and Municipal Services taking a $17 million cut, and the environment directorate’s budget cut by $7.8 million.

Programs cuts will achieve further savings of $18.6 million across all government departments, with ‘‘low priority programs’’ being dumped. These include the ACT rainwater tank rebate and Tune Up Canberra, a $2 million grants program to encourage commercial office buildings to improve energy efficiency.

The ACT government has allocated $243,000 over two years for kangaroo management research, $183,000 for feral pest management, including rabbit control and ‘‘knowledge-based management’’ of feral deer. It will also spend $270,000 to manage ‘‘biodiversity offsets’’ - land used to offset the impact of urban development on threatened species.

Other initiatives include new electric vehicles for the ACT government fleet, $750,000 to repair storm damage to waterways. $930,000 to build new roads for the Mugga lane tip extension and $101,000 to continue a breeding program for the endangered corroboree frog.

Environment minister Simon Corbell said the$ 5 million Carbon Neutral fund would help the government meet its ambitious greenhouse emissions reduction targets by providing funds for ‘‘necessary changes within government directorates to reduce energy use.’’