ACT Chief Minister Katy Gallagher has defended the territory's budget investments, despite a 1% reduction in overall spending. Speaking to reporters, Gallagher emphasized that the government's approach is both responsible and targeted, focusing on key areas such as health, education, and infrastructure.
Budget Priorities
The 2024-25 budget allocates significant funding to healthcare, with an extra $150 million for Canberra Hospital upgrades and mental health services. Education receives a $100 million boost for new schools and teacher recruitment. Infrastructure projects, including light rail stage 2A, are also funded.
Fiscal Responsibility
Gallagher noted that the 1% spending cut is part of a broader strategy to maintain a surplus while delivering essential services. 'We are investing in the future while keeping our finances sustainable,' she said. The budget forecasts a surplus of $50 million for the next financial year.
Opposition leader Elizabeth Lee criticized the budget as 'timid,' arguing that more investment is needed to address cost-of-living pressures. However, Gallagher countered that the government's targeted investments will create jobs and improve services without burdening taxpayers.
The budget also includes tax reforms, with land tax changes expected to raise $80 million over four years. Critics argue this will hurt small businesses, but the government insists it will make the tax system fairer.
Overall, Gallagher remains confident that the ACT budget strikes the right balance between investment and fiscal discipline.
