The ACT Government will borrow and slash more over the next four years to make up for a $200 million shortfall in expected GST revenue, after the federal budget's forecasts predicted a further decline in sales.
ACT Treasury had relied on the Federal Government's February budget update for the forecasts contained in last week's ACT budget. However, Tuesday's federal budget predicted that from 2008-09 to 2012-13, the ACT would receive $198million less in GST receipts than predicted three months ago.
Also, the ACT will receive about $20 million less over four years in Commonwealth grants under payments for specific purposes, which require co-funding from state and territory governments in areas such as health, education and housing. Health will be the hardest hit, losing about $7million.
ACT Treasurer Katy Gallagher said the Government would combat the $220 million shortfall by increasing its borrowings and finding an additional $30million in savings in 2012-13.
For more, pick up a copy of today's Canberra Times.