Released 05/02/2026 - Joint media release
The ACT Government’s mid-year economic update shows the Government is on track to deliver an improvement in the Budget bottom line from a deficit of $1.1 billion in 2024-25 to a deficit of $499.1 million in 2025-26 - a $632 million turnaround.
This strong fiscal recovery is being achieved through ongoing economic growth, budget discipline, and the strengthening and streamlining of the public service through machinery of government changes.
The year-on-year fiscal improvement continues across the forward estimates period with the Budget moving to balance and then surplus.
The Government is delivering the high-quality services Canberrans need while growing our economy and ensuring the budget position improves.
The ACT economy remains strong, with Gross State Product increasing by 3.5 per cent in 2024-25, representing 29 years of continuous economic growth for the Territory. Our economy is growing faster than most other states and territories and well above the growth in the national economy.
The outlook for the economy remains positive, with growth forecasts unchanged.
Investments in community and suburban infrastructure will continue as promised, with many projects now underway across Canberra.
As in all jurisdictions, the Territory has experienced structural funding pressures in core service delivery due to increasing costs and rising demand. These will be managed within the 2025-26 Budget Appropriations passed by the Legislative Assembly in spring last year.
The 2025-26 Budget Review outlines the actions taken by the Government to strengthen public services for Canberrans and their families. This includes:
- $43.4 million of additional funding for public schools to meet the learning needs of students;
- $17.2 million to provide additional ongoing funding to continue administering the Financial Assistance Scheme and additional temporary funding for administering the Victims’ Services Scheme;
- $15.4 million to fund an increased program of essential works for Housing ACT's Repairs and Maintenance program;
- $14.1 million in to support Children, Youth and Family (CYF) Services (including Out of Home Care);
- $11.8 million to continue the Intermediary Program in the Human Rights Commission on an ongoing basis; and
- $778,000 in continued support for the Aboriginal and Torres Strait Islander Elected Body to strengthen its capacity and independence.
The mid-year budget update does not account for the National Health Reform Agreement secured last Friday, which includes $4.1 billion in Commonwealth funding our public health system over the next 5 years starting from 1 July 2026.
As part of the agreement with the Commonwealth, the ACT will also receive additional funding to address the challenges that smaller jurisdictions face in delivering health services compared to larger jurisdictions while more permanent arrangements to address this issue are implemented.
Changes to budget estimates from this agreement will be reflected in the 2026-27 Budget in June.
To view the 2025-26 ACT Budget mid-year review, visit 2025-26 Budget Review.
Quotes attributed to Treasurer Chris Steel:
“Today’s mid-year Budget update shows the Government’s sensible fiscal strategy is working, as we deliver the services and infrastructure Canberrans expect and continue to improve our fiscal position.
“Our local economy continues to perform strongly, growing faster than any state or territory in the country.
“We’ll continue to make sure we deliver on our progressive agenda to support the wellbeing of our community - without resorting to deep cuts.”
Quote attributed to Finance Minister Rachel Stephen Smith:
“The Budget Review reflects the hard work we’ve done to embed the fiscal turnaround forecast in the Budget.
“Our strategy is on track to deliver ongoing improvements in the Budget bottom line without compromising government services or public sector jobs. I thank the public servants who are delivering for our community every day.
“We will continue the important work of identifying further prioritisation opportunities to ensure the Government can continue to meet its commitments to Canberrans.”
- Statement ends -
Chris Steel, MLA | Rachel Stephen-Smith, MLA | Media Releases