South Australia’s COVID-19 economic recovery fund boosted to $4 billion in State Budget
A stimulus fund to lift the state out of the COVID-19 slump will be doubled in Tuesday’s Budget – targeting projects that can be completed in two years.
SA News
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Stimulus funding aimed at fast-tracking South Australia’s economic recovery from COVID-19 will be lifted to $4bn in Tuesday’s Budget.
It will double the funding already on the table – and an additional $1bn is expected to be leveraged from the Federal Government.
Premier Steven Marshall has promised the “biggest hit of economic adrenalin in South Australia’s history” and confidently predicted it would help create thousands of jobs across the state.
The funding is part of a budget that’s expected to take advantage of record low borrowing rates as an opportunity to spend big on infrastructure.
In March, at the peak of the coronavirus pandemic, the State Government announced two stimulus packages, totalling $1bn.
The figure was later raised to $2bn by taking into account payroll and land tax relief and $10,000 emergency cash grants for small businesses – a practice that has been openly criticised by the Opposition.
On Tuesday, additional stimulus funding will build on targeted funding streams set up during the height of the pandemic.
This includes a program to help businesses and sectors at risk of collapse and another for sporting clubs, arts and recreational bodies as well as non-profit organisations.
A “tradies” package,revealed by the Sunday Mail last month, will provide a $1bn pipeline of building and construction work, with a focus on maintenance and shovel-ready projects.
The Economic Business and Growth Fund, which provides funding to new sectors and aims to attract new state-based businesses will also be expanded.
Mr Marshall said the focus of his government’s stimulus spending was on projects that could be completed, or significantly completed, within the next two years.
“This is the single biggest hit of economic adrenalin by a state government in South Australia’s history – a huge stimulus investment that will create thousands of jobs, back local businesses and build what matters particularly over the next two years,” Mr Marshall said.
“We’ve always said we will do whatever it takes to save as many lives and livelihoods throughout the greatest economic challenge of our time in COVID-19.”
Opposition treasury spokesman Stephen Mullighan has been critical of the government’s handling of stimulus funding, claiming it has been too little too late.
He also argued that it was disingenuous to have turned the $1bn figure into $2bn because it was mainly deferred taxes that would still have to be paid.
“Tuesday’s budget needs to drastically increase the State Government’s stimulus, but even more importantly get that money out and into the community,” Mr Mullighan said on Saturday.
“The State Government has wasted nearly three years delaying major infrastructure projects costing South Australians thousands of jobs and our state now needs to get on with the job of getting our economy growing again.”
The government has made a number of pre-budget announcements including:
ROAD maintenance funding assisted by the Federal Government worth $268m.
UPGRADES to jetties, boat ramps and bridges worth $40m.
A NEW $6m step-down unit to care for brain and spinal patients at the reactivated Repat.
EXPANSION of the Gawler Hospital Emergency Department worth $15m.
Attention will now turn to what money will be in the budget for major projects, including a new Women’s and Children’s Hospital and the North-South Corridor.
Mr Lucas is expected to announce details of the build type and cost of the final stages of the North-South Corridor with residents living near the uncompleted 10.5km stretch of South Road urging for the construction of tunnels. Money for sports facility upgrades will also be made available, including a major revamp of the Hindmarsh Stadium.
After dumping Adelaide’s Superloop 500 car race, there will also be pressure on the government to outline a plan to deliver a promised “suite of events” to replicate the success of the historic car race meeting.
Mr Marshall said the government would establish an events advisory committee that will act as a think tank to determine how they can bolster SA’s “already comprehensive” events list.
