Stopping short of describing the package as having potential to cause a recession in the territory, Ms Gallagher said the end of national funding agreements on health and education and as many as 16,500 public service job losses were nothing but bad news.

"This is a very tough budget for the ACT and there's really no way to dress it up and pretend otherwise," she said.

While Liberal Senator Zed Seselja and the ACT Opposition welcomed a $26.8 million package for the fit-out and relocation of Department of Social Services offices in Tuggeranong, Ms Gallagher described the move as "business as usual."

"I think it's great that they are staying in Tuggeranong but I don't think it compensates on any scale for the Commonwealth asking so many public servants to lose their jobs.

"They had to do something because they were coming to the end of their lease so in a sense this was nothing other than that," she said.

The ACT Government budget won't be immune from the fall-out and negative population growth and modest GST revenue increases will see changes to land release programs and local infrastructure projects.

"It looks like we are the only state or territory to actually go backwards in funding from the Commonwealth, and that's despite receiving a letter from the Prime Minister saying we would all be ahead," Ms Gallagher said.

"I think it shows a level of disdain for the people of the ACT."

Senator Seselja said keeping 1800 government workers in the Tuggeranong district would benefit the wider ACT economy.

"This is fantastic news for the community who expressed grave concerns about the department moving out of Tuggeranong," he said in a statement.

"I have fought hard to keep DSS in Tuggeranong and this shows that the Coalition Government is listening to the needs of Canberrans.

''This decision provides certainty and stability for those business owners."

ACT Opposition Treasury spokesman Brendan Smyth said he regretted APS job cuts, but the budget reflected "the mess Labor left the Australian people."

"Joe Hockey said we all have to share the pain to get this nation back on a reasonable path," he said.

He praised modest measures including $3.3 million for the continuation of a digital collection at the Australian Institute of Aboriginal and Torres Strait Islander Studies saying it would benefit Australian history and culture.

Canberra MP Gai Brodtmann said the budget brought only bad news for the ACT.

"We've seen an increase to the efficiency dividend of 0.25 per cent, as well as 230 programs cut, 70 government bodies cut and 16,500 job losses over three years."