Canberra and ACT Hit Hard by Recession
Friday May 15, 2009
The Australian Capital Territory's government will have to cut costs and borrow to try and recover from a $200million loss in expected GST revenue, resulting from the predictions of a further decline in sales in the federal budget.
On Tuesday, the federal budget predicated that the ACT would receive $198million less in GST receipts from 2008-09 to 2012-13 than what was predicted three months ago.
The ACT will in addition receive approximately $20million less in Commonwealth grants over four years including health (losing the most at $7million), housing and education areas.
ACT Treasurer Katy Gallagher said that the government would increase its borrowing and find an extra $30million in savings in 2012-13 to counteract the $220million losings.
Find out more about Canberra and the ACT and visit canberra.com.au.
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