This compares with an overall increase of 4.14 per cent in federal grants to states and territories. The precise way this will affect Canberrans will not be known until next month’s ACT Budget.
Per head the grant cut is $284, or 13.08 per cent on last year’s per head grant. The other states and territories will get an average per head increase of $60.
Federal grants made up a tad under a half of ACT Government revenue last year.
The Federal Budget also provides a 3.1 per cent cut in the Public Service. About 20,000 of the 160,000 Federal public servants work in the ACT, excluding ACT Administration public servants still under the Federal Act. It could translate into 600-odd jobs.
The total Federal grant of $568 million for 1993-94 (down from $640 million) reflects the transition to state-type funding for the ACT. Grants to all other states and territories were increased, except for a slight decrease for South Australia.
The ACT will get $1888 per head in Federal funding next financial year, down from $2172 this year. Four states do worse and three better, and the ACT is still above the average, reflecting some national-capital disabilities.
On the more cheerful side, the Budget provides $114 million over five years for purpose-built accommodation for the Australian Geological Survey Organisation.
Further, the ACT’s own budgetary affairs are in better order than any other state or territory. ACT debt as a ration of gross state product is about 3 per cent and interest on it is less than half a per cent of outlays. This compares to more than 30 per cent and 16 per cent respectively in the rust-belt states.
Co-incidentally, the Chief Minister, Rosemary Follett, announced yesterday that the ACT Budget came in at about $60 million better than Budget and the Budget practically balanced. Expenditure was $31.1 less than budgeted.
This will put the ACT in a better position to meet the Federal cuts without less affect on programs and less need for new revenue measures. Still, the ACT has to find some $72 million.
The Budget papers revealed that at least some people in the ACT are doing well. One person report an income of more than $1 million and 12 reported incomes between $500,000 and $1 million.