The ACT government has recorded another billion-dollar deficit, with the Canberra Liberals warning that rising debt and interest payments will add to cost-of-living pressures.

Shadow Treasurer Ed Cocks says Treasurer Chris Steel confirmed at an annual reports hearing today (November 10) that the government’s operating and cash deficits both exceeded $1 billion.

Cocks says the operating deficit was nearly three times the amount forecast in the 2023-24 Budget, despite the government receiving more revenue.

He says the government borrowed more than $3 billion last year, increasing debt by nearly $2 billion, while refinancing existing borrowings at higher interest rates.

According to Cocks, interest payments are costing the territory more than $1.8 million a day this year.

“Every dollar Labor has to spend on interest is a dollar it can’t spend on the services Canberrans rely on,” he says.

Cocks also argues that higher residential and commercial rates are adding to financial pressures on households and businesses, with increased costs potentially flowing through to rents and consumer prices.

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