Andrew Barr's territory budget will include a deficit of $407 million for the 2015-16 financial year, up from the estimated $250 million issued in January.
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The deficit for 2014-15 has been revised down to $597 million, from $770.5 million projected at the time of the mid-year review and shortly after Mr Barr took over as ACT Chief Minister.
The lower than forecast deficit for this year has come at the expense of next year's budget bottom line, as a result of some of the pain from the Mr Fluffy asbestos buyback being pushed back to next year.
Mr Barr said last week much of the Mr Fluffy cost would now hit in 2015-16.
Figures to be included in Tuesday's budget will forecast a deficit of $116 million for the 2016-17 election year budget, followed by a deficit of $51 million in 2017-18, the first budget of the next Legislative Assembly term.
A wafer-thin surplus is forecast for 2018-19, estimated to come in at $50 million.
Road users targeted
The cost of drivers' licences will also rise on Tuesday, with the fee for issue or renewal of learners' permits, full licences, provisional licences and probationary licences up by 3 per cent.
Figures published on Friday show the change makes a five year full licence issue or renewal cost $171.60, up from $167.10.
Canberra motorists will also notice a 6 per cent hit when they pay for parking from July 1. The increase is set to occur each year until 2020, and will add $1 a day to long-stay parks in the city.
All day parking will be $15 per day from July 1 and hit $18 per day by July 2018. The hit equates to about $230 extra each year for full-time workers in Canberra this year.
Stamp duty cuts
The budget will also include further cuts to stamp duty for home purchases.
From Wednesday, the buyer of a $300,000 home will pay about $900 less in government stamp duty compared with the previous financial year. When compared with 2012, the start of annual cuts to conveyance duties by the ACT government, the saving is about $2900.
The buyer of a $500,000 home will save $1200, or $5900 based on pre-2012 tax rates and the buyer of a $750,000 home will save $1200 or about $7775 on 2012 rates.
As reported by Fairfax Media's Australian Financial Review last week, insurance tax will be cut from July 1.
Mr Barr said the tax would drop from 4 per cent to 2 per cent on all premiums, including building and contents, motor vehicles and professional indemnity. Tax paid on life insurance policies will be cut from 2 per cent to 1 per cent.
He said 2015-16 will be the last year that duty will apply on insurance policies, with the tax being fully abolished from July 2016.
"Once insurance tax is abolished, households and businesses will save 10 per cent on their building, contents, motor vehicle, business and professional insurance," Mr Barr said in a statement.
The government's estimated savings for a household with $3,000 of building, contents and car insurance were $300 each year, while savings for a business with $10,000 of insurance could be $1000 annually.
"The ACT's low and declining insurance duty rates also compares favourably to other jurisdictions," Mr Barr said.
"The rate of duty on general insurance in New South Wales and Queensland is 9 per cent, 10 per cent in Victoria and 11 per cent in South Australia."
Mr Barr said Canberra's suburbs would be renewed by the budget package, and Canberrans would find it easier to buy a home. He said it would create a tax system to provide "a more stable revenue base for the ACT budget to fund essential services".
