Record debt and deficit - the Budget blues

Cumulative deficits of 1.679 million, net debt more than doubling to $8.5591 billion and an efficiency dividend of $300 million over three years. 

That’s the take-out from this year’s State Budget which, according to Treasurer Michael Ferguson, “focuses on driving the delivery of our 2030 Strong Plan for Tasmania’s Future”.

Citing a range of challenges including the softening national economy, high interest rates, the Federal Government, and the ongoing response to the Commission of Inquiry, the budget predicts a net operating deficit this financial year of $792.8 million.

There has also been a further softening of GST receipts, with a revision downward of $389.8 million over the Budget and Forward Estimates since last year.

A surplus is not predicted until 2029-30.

YOUR BUDGET WRAPUP AND ANALYSIS FROM BRAD STANSFIELD IN THE TASMANIAN BUSINESS REPORTER

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