Scrivener Dam is set for a $38.5 million upgrade after money for the project was contained in a federal budget which forecasts funding for health in the ACT will be cut next year - before rising again.
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The Morrison government has also set aside $2.6 million for new statues of prominent Indigenous Australians in the heart of Canberra.
Treasurer Josh Frydenberg's budget, handed down on Tuesday night, delivered mixed news for the ACT.
ACT Chief Minister Andrew Barr said the federal government had ignored Canberra again and significantly short-changed the territory on infrastructure investment.
The budget included no extra funding for roads or transport projects beyond the $51 million pre-announced earlier this week.
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Mr Barr had said on Monday the ACT would be right to feel short-changed if the $51 million - which includes $46.7 million toward the Athllon Drive duplication - was the extent of the territory's share of the Coalition's massive national infrastructure spending blitz.
However, the budget did allocate $38.5 million over four years to upgrade Scrivener Dam, although the extent of the works are unclear.
The budget shows the government is expecting to provide the ACT with $2.8 billion in funding next financial year, down three per cent on 2021-22.
Health funding will drop from $549 million to $526 million.
The withdrawal of temporary COVID-19 business support and a "bring-forward" of local government financial assistance grants is the reason behind the cut, according to the government.
However, budget papers forecast that Commonwealth funding to the ACT will rise again, growing to more than $3 million in 2025-26.
Health funding will rise to $620 million by the middle of the decade.
Mr Barr on Thursday said it was clear a change of federal government was needed for the ACT to get a fair deal on infrastructure investment.
"The Commonwealth have failed to invest in the AIS precinct, especially the reopening of the AIS Arena, and the precinct continues to face an uncertain future," Mr Barr said in a statement.
"This is an urgent priority for the ACT in the federal election, and we will continue to advocate for a renewal partnership with the Commonwealth after the election."
Mr Barr also criticised a lack of funding in the budget for programs to transition Australia to net-zero emissions, describing it as "the latest in a long line of missed opportunities for the Commonwealth to partner with the states and territories on this urgent priority".
The Chief Minister said the government's push for more public servants to work outside capital cities should focus on congested cities and not Canberra.
- with Jasper Lindell
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- At a glance: a five-minute budget summary
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- Analysis: Karen Barlow explains the federal budget
- What's in the budget for defence and national security
- The budget's economic forecasts and tax settings
- What the budget means for the public service
- What the budget means for older Australians
- What the budget means for younger people
- What the budget means for small business
Dan Jervis-Bardy
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
