The ACT Government will borrow up to a record $550 million by 2011 and slash a further $25 million in spending after the federal budget blew a $220 million hole in the territory's bottom line.
ACT Treasurer Katy Gallagher issued an updated budget forecast yesterday after the Federal Government's budget last week, which significantly revised down the GST receipts it expected to collect on behalf of states and territories over the next four years.
Ms Gallagher had said last week she hoped that despite the revised forecasts the ACT would not have to borrow above the $400 million ceiling set in the ACT budget she delivered two weeks ago.
However, yesterday's Treasury update increased the borrowing limit by $150 million, predicting borrowings of up to $550 million in 2010-11 to prop up funding for the territory's infrastructure program. It will be the first time under Chief Minister Jon Stanhope the ACT has had to borrow.
For more, pick up a copy of today's Canberra Times.
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