The ACT will receive $37 million in replacement federal funding for health and education, as Malcolm Turnbull and Scott Morrison seek to bury Tony Abbott's controversial 2014 budget cuts.
Tuesday's budget papers show national partnership payments for the 2016-17 financial year will increase from a planned $837 million for the ACT to $874 million.
However, the extra money won't completely restore the previous funding.
In 2017-18, the payments will increase from a planned $825 million to $848 million. The increases continue in 2018-19, rising from $810 million forecast last year to $866 million on Tuesday.
ACT Chief Minister Andrew Barr slammed the pre-election budget funding for Canberra, including the government's plans to make nearly $2 billion in savings by ditching a scale back the public service efficiency dividend cuts from next year.
Across-the-board savings imposed on public service budgets will remain at 2.5 per cent in 2017-18.
Mr Barr said ACT Treasury officials estimated a $1.9 billion efficiency dividend could result in about 1400 fewer Canberra-based public service positions.
"This budget is an exercise in breathtaking hypocrisy," he said in a statement on Tuesday night.
"The Liberals' claim this is a budget for jobs and growth, but their so-called efficiency dividend and cuts to national institutions will see more than a thousand Canberrans lose their jobs."
"And it's pretty hard for Canberra small business to grow, when the Liberals keep sacking your customers. They say they have a plan for cities, but there's no new funding for infrastructure in the national capital."
Mr Barr restated concerns the federal Coalition had broken former prime minister Tony Abbott's assurance that there would be no further cuts to Canberra.
"Unsurprisingly they've done nothing effective to plug the gaping hole they've left in our schools and hospitals," Mr Barr said.
Greens ACT Senate candidate Christina Hobbs said much of the ACT community would be angry with the budget.
"This budget will hit Canberra hard, with more cuts to the public service and big hits to our local economy.
"These new cuts are short-sighted and can only hurt critical front-line services. We already know that one in three calls to Medicare, Centrelink, and child support agencies go unanswered.
"These cuts will make those problems worse and put staff under even more pressure," she said.
ACT Liberal Senator Zed Seselja said the budget was good for the capital.
"We are now seeing jobs growth in the public sector, jobs growth for contractors through departmental spending and jobs growth for the private sector showing that employment and confidence in the ACT is stronger than ever," he said.