State net debt balloons to $46bn to pay for Torrens to Darlington project, Mid-Year Budget Review reveals

State debt will hit a whopping new high to pay for major infrastructure projects – and one in particular, the Treasurer has revealed.

State debt will balloon by nearly $2bn – to a whopping $46bn – in order to pay for major infrastructure works in South Australia including the Torrens to Darlington project.

The Mid-Year Budget Review, handed down on Tuesday, showed the $15.4bn cost of the road project is unchanged.

But $8.64bn of the total figure is now included in the budget, instead of the $7bn forecast at the June budget. The remainder will be funded in future budgets.

The review also revealed a $413m operating surplus for the 2023-24 financial year – $107m higher than what had been projected – on the back of strong property market revenue and a more buoyant economy.

Treasurer Stephen Mullighan said the result was a result of the government’s commitment to budget surpluses, “giving capacity to invest in major infrastructure projects and to improve services for the community”.

But the opposition said the figures in the review were “more proof that the government is incapable of responsible fiscal management”, and called for a debt management plan.

Treasurer Stephen Mullighan on the steps of Parliament House. Picture: Dean Martin

Other increased spending revealed in the review included $135m to meet higher-than forecast costs of South Australia’s participation in the National Redress Scheme for Survivors of Institutional Child Sexual Abuse, and $129.1m in 2024-25 to support children and young people in care.

The state has also committed $30m over two years to deliver a dual-lane roundabout at the Curtis Rd and Heaslip Rd intersection at Angle Vale, in partnership with the federal government.

The Domestic Violence Crisis Line will receive a $1m annual boost after it was revealed that one in three callers to the service had gone unanswered.

Mr Mullighan said the increased net debt figure was not a concern for the government.

“Whilst debt across the forward estimates increases, forecast interest payments on debt have reduced, due to forecast lower interest rates than assumed in the 2024-25 budget,” he said.

He said spending on the Torrens to Darlington project had been brought forward after the August announcement of the consortium that will deliver the tunnels.

But Opposition Leader Vincent Tarzia said savings opportunities had been missed.

“Net debt has ballooned out by almost $2bn since the government’s budget six months ago and, since taking office, they have spent more than $2m on extravagant ministerial travel and more than $100m on government advertising,” he said.

“This government will continue to hide behind the facade of small operating surpluses to cover up the spiralling debt, budget overruns and delayed infrastructure projects.”

The opposition called on the government to introduce stamp duty exemptions on existing homes for first home buyers.