Canberrans: do you want the good news or the bad news?
In the next year or two, public sector job cuts and slashed federal spending in education and health will hurt the ACT's economy.
But in the longer-term, a boost in infrastructure investment will mean there's light at the end of the tunnel.
That is how Deloitte Access Economics foresees the federal and ACT budgets' impact on the local economy.
It says while there will be short-term pain through to early 2016 with 2000 public servants set to lose their jobs, the numbers pale in comparison with the 14,500 cut under the previous Labor government.
The research body says even if all the cuts in the federal budget are realised, they would cut federal spending back to an average 2.7 per cent a year in the coming decade, compared with Labor's promised two per cent.
"Which would have been much tougher," partner Chris Richardson said in a statement.
Instead, the economy will benefit from a stimulus package of infrastructure investment, such as light rail and ActewAGL capital works, and the federal-state asset recycling deal.
It will also reap the benefits of Asian investment in new construction and boosted property prices with the deceleration of land releases.
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