Opposition Accuses ACT Treasurer of Overstating Budget Turnaround
The Canberra Liberals and Greens have launched a scathing critique of ACT Treasurer Chris Steel, asserting that his claims of a budget turnaround significantly overlook a stark deterioration in the territory's fiscal position. The political opponents argue that recent mid-year budget reviews reveal a far more concerning financial landscape than the government has publicly acknowledged.
Deficit Figures Show Alarming Fourfold Increase
Ed Cocks, the opposition's Treasury spokesman, highlighted a dramatic shift in the budget forecasts. "Instead of the $117 million deficit that they were forecasting this time last year, we've seen a half-a-billion-dollar deficit for this year alone. That's going backwards by four times the amount they said last year," Mr Cocks stated emphatically. He further criticised the government's repeated failure to deliver promised surpluses, noting they had made such commitments at least twenty times without success. "Things are getting worse, not better," he concluded, underscoring the severity of the situation.
Greens Leader Calls for Sustainable Fiscal Strategy
Greens leader Shane Rattenbury echoed these concerns, pointing to a $382 million deterioration between the two most recent mid-year budget reviews. This substantial increase, from a forecast deficit of $117.1 million in the 2024-25 review to $499.1 million in the latest update for 2025-26, represents the highest deficit in the history of ACT self-government. Mr Rattenbury stressed the urgent need for a clear and sustainable strategy to restore the budget to balance. "We need to make sure that we have the money to invest in vital community services to look after vulnerable Canberrans and have a sustainable pathway for doing that," he explained.
The Greens leader proposed specific measures to address the deficit, including cutting the ACT's aviation stimulus fund. "The Greens would not support the aviation stimulus fund where we'd simply go around inviting, essentially paying airlines to fly to the ACT," Mr Rattenbury said. He also suggested reallocating resources within the public service, advocating for more staff in frontline areas rather than administrative units. "What we have been very clear about is that doesn't mean that you don't want to shift your priorities. Have more people working perhaps in front line areas. That's the sort of things that the Greens are looking at and researching," he added.
Treasurer Defends Government's Approach Amid Criticism
Treasurer Chris Steel had previously claimed a $632 million improvement in the ACT's deficit, comparing the current $499.1 million deficit to the previous financial year's $1.1 billion shortfall. However, this assertion has been met with scepticism from the opposition. Mr Cocks argued that the budget is structurally regressing, with the government relying excessively on tax increases and inefficient spending. "We are seeing a billion-dollar increase over the course of the forward estimates in own source taxation. The numbers just can't keep on going in this direction. It's very clear that the ACT government has not focused enough on controlling the way it spends money," he remarked.
In response to questions about whether the mid-year budget would secure continued Greens support in the Legislative Assembly, Mr Steel defended the government's strategy. "The Liberals have been saying that the ACT is in a fiscal crisis to soften the ground for deep cuts that they would like to make to the public service in a future Liberal government. And we don't agree with that approach," he stated. "What we have set out through the budget last year and through the budget review is a sensible path back to balance and surplus, and that's what we're pursuing, while investing in the targeted investments that we need to make in infrastructure and services to the community."
Political Landscape and Future Collaborations
The budget debate occurs against a backdrop of potential political realignments in the ACT. Over the summer break, the Canberra Liberals and Greens engaged in discussions about forming a coalition to replace ACT Labor, though no formal agreement has been reached. Greens deputy leader Jo Clay recently indicated that these talks included proposals to reduce executive-level positions in the public service and redirect staff from underperforming business units.
Mr Rattenbury emphasised the Greens' commitment to working with the government to address the deficit through four key approaches, ensuring community services remain funded while achieving fiscal sustainability. "I think there are still real concerns about the ACT's fiscal position like other jurisdictions. We need to work hard over a sustained period of time to bring the finances into line," he affirmed. As the territory navigates these financial challenges, the political dynamics and budgetary decisions will continue to shape Canberra's economic future.
