The National Multicultural Festival may have to expand further into Glebe Park or move entirely from the city in two years as major developments impinge on the current festival footprint.

Multicultural Affairs Minister Tara Cheyne told Budget Estimates that the festival had only been funded for the next two years due to light rail, major development at Garema Place and the coming Canberra Theatre redevelopment, necessitating changes to where the festival will be located.