The Canberra Liberals have called on ACT Finance Minister Rachel Stephen-Smith to explain comments made on ABC radio that the government had improved the territory’s fiscal bottom line by half a billion dollars.

Shadow Treasurer Ed Cocks said the claim was “extraordinary and grossly inaccurate”, arguing it was at odds with official figures that show the ACT’s financial position continuing to deteriorate.

“This seems like a desperate attempt to spin an abysmal failure into an achievement,” Mr Cocks said. “Labor has seen a threat to its hold on power, and now it is trying to spin its way out of trouble.”

Mr Cocks said the government had repeatedly promised surpluses that had failed to materialise, instead delivering deficits year after year.

“Despite their promises of surpluses that never materialise, Labor has spent well over a decade sending the ACT backwards with year after year of deficits. The Finance Minister’s claims of a miracle turnaround are just not credible,” he said.

The Canberra Liberals pointed to the 2024–25 Budget update, which estimated a deficit of $117.1 million for 2025–26 on the government’s preferred measure. That figure increased to $425 million in the most recent budget, with the widely accepted underlying primary fiscal (UPF) measure predicting a deficit of $682 million.

Mr Cocks said the deficit added to the ACT’s growing liabilities, with official figures released in October showing total territory debt had reached $14.9 billion last year. Net financial worth had declined to minus $16.8 billion, while interest expenses were forecast to reach $1 billion a year — more than 25 per cent of the ACT’s own-source taxation.

He said the Opposition’s concerns were supported by a recent ACT Auditor-General’s report, which highlighted a structural fiscal imbalance, rising interest costs and a pattern of surplus forecasts that failed to eventuate.

“Labor has had sole control of the Treasury portfolio for 24 years, and things just keep getting worse,” Mr Cocks said.

“To claim a ‘half-billion-dollar improvement’ when this year’s deficit has tripled takes some extreme spin,” he said, adding that unfunded election promises and warnings from credit agencies and financial commentators increased the risk of further credit rating downgrades.

Mr Cocks said the Finance Minister had a responsibility to provide an honest account of the Territory’s finances.

“Claiming an improvement when the ACT’s finances are clearly going backwards risks further undermining public trust. She must explain herself to the Legislative Assembly, and the community,” he said.