This week's announcement of job cuts at Infrastructure Canberra may not be particularly surprising, but comes as just the latest confused signal from a government that insists it has a plan for the prudent financial management of the ACT.

Subscribe now for unlimited access.

Login or signup to continue reading

The ACT budget, handed down in June, contained some tough medicine, forecasting a continuing rise in expenses and net debt expected to grow every year of the forward estimates. The unforeseeable shock of war to the global economy, which had driven up costs of most things but especially transport, had hammered the government's bottom line.

As a result, rates bills would have to rise on average by 5 per cent and frontline services would be prioritised as the government looked to make savings.

After priming us for this inevitable belt-tightening and insisting that the deficit could be tamed without impacting critical services, Treasurer Chris Steel announced a surprise improvement just weeks later when in August he revealed a cash surplus ahead of schedule that showed, "the government is delivering responsive and responsible fiscal management," the Treasurer said.

So those who breathed a cautious sigh of relief at that news and thought things might be back on track could........

© Canberra Times