The ACT government has chosen investment over austerity as it reels from the impact of big federal cuts.
The federal budget in May tore a $375 million hole in the territory's books.
Before then, ACT Treasurer Andrew Barr expected to deliver a modest deficit for 2014/15 followed by a balanced budget and two years of surpluses.
What he unveiled on Tuesday was a $332.8 million deficit with the return to surplus delayed by two years to 2017/18 - well after the next territory election.
"All (federal Treasurer) Joe Hockey did on budget night was say 'someone else's problem' and he flicked it to states and territories," Mr Barr said.
The economic slowdown comes not just from the direct hit but the Commonwealth's plans to sack public servants.
An estimated 6500 Canberra-based bureaucrats will lose their jobs over the next four years.
The work force contraction rate would be double that of Adelaide's after Holden closed its factories, and triple the rate of other car-making areas, Mr Barr said.
If the Commonwealth offered Canberra the same support to cope with job losses, it should put up a $139 million package. But it won't.
"We're on our own and we're going to have to make our own luck in coming years," Mr Barr said.
"We are keeping the economy growing, we are keeping jobs growth ... positive."
The government's focus is on capital works and encouraging private investment.
It has proposed $415 million of new infrastructure, including expanding the jail and building a multi-storey car park at Calvary Hospital, a school in Coombs and new public housing.
There are also undisclosed amounts set aside for a new hospital at the University of Canberra, a Canberra Institute of Technology campus in Tuggeranong, new courts and the Australia Forum convention centre.
Plans for light rail and redeveloping the Lake Burley Griffin foreshore continue.
The government won't cut programs, but instead raise money for infrastructure through borrowing, private investment and asset sales.
It plans to take advantage of the Commonwealth's 15 per cent asset recycling bonus by selling betting agency ACTTAB, ageing public housing, surplus land, office buildings and its 62,500 streetlights.
Selling streetlights could save money in the long run - the government isn't immune from rising power bills and expects to pay an extra $3.2 million for electricity.
The bulk of the federal cuts ripped $240 million from the ACT health budget, which the territory will plug for now but says can't keep happening long-term.
More money has been allocated for elective surgery and hospital beds, including in intensive care.
There is also a range of programs to support innovation, tourism and help sacked public servants move into the private sector.
Most of the savings come through efficiencies from using technology and delivering services online.
Mr Barr's long-term plan of tax transformation continues with further cuts to stamp duty, payroll tax and insurance duty.
In two years, the ACT will become the first jurisdiction not to charge any taxes on insurance.
The budget is also encouraging older Canberrans to sell their family homes by cutting stamp duty to $20 for over-60s who downsize.
But household rates will go up by an average of 10 per cent, and other fees and levies will increase.
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