Katy Gallagher and Andrew Barr aren’t expecting much applause for their 2013 budget.
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The document has the political goal of giving the Labor-Greens government room to manoeuvre as it prepares for the twin challenges of steering the territory through difficult economic times and running for re-election in 2016.
The budget includes measures many Canberrans aren’t going to like – higher rates bills and $142 million worth of spending cuts. The cuts will largely be offset by $127.7 million in new spending.
While spending cuts will displease some, we’ve seen much worse in the past.
“We’re not closing any schools,’’ one government operative joked last week.
Treasurer Barr hasn’t cut spending too hard because he doesn’t want to hurt the waning local economy which is already being battered by federal spending cuts which will continue next year.
But he’s also been careful not to let spending blow out further because of the risk revenue will crash if substantial cuts are made to the federal public service next year.
Barr hopes the budget will return to surplus in 2015-16.
The government is keeping its options open about how quickly to progress major building projects.
The budget contains funds for the planning of future capital works project such as the Capital Metro light rail network, City to the Lake project and a new northside sub-acute hospital.
The timing of the spending on the projects themselves may depend on when the government can afford them and on whether the economy needs an urgent economic stimulus. But Labor will want some shovels in the ground in time for the 2016 poll.