Andrew Barr has the happy news that the Commonwealth Grants Commission is bestowing extra GST money on the good people of Canberra:
The CGC report recommends draft new relativities – these relativities govern how much each state/territory receives.
The ACT’s relativity has increased, largely because of:
— Rising cost of providing services, notably health; and
— Infrastructure costs rising because of strong population growth.
As a result of its higher relativity, the ACT is set to receive an extra $52.5 million in 2012-13
In the mid-year budget review the Government foreshadowed a $62.3 million reduction in GST funding over the forward estimates. The new relativities would revise this to a $104.1 million increase.
I welcome the proposed funding increase for the ACT.