Ten big questions for Treasurer Rob Lucas must answer in the State Budget
Today, the Treasurer will unveil the kind of Budget political leaders have nightmares about. Here are 10 questions it must answer.
SA News
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Treasurer Rob Lucas on Tuesday is expected to unveil the type of Budget political leaders have nightmares about.
In the past few weeks the State Government have dropped a raft of hints about some of what will be outlined in full on Tuesday – including a $4 billion stimulus spend, a $1 billion tradies package, $130 million for parks, and money for shovel-ready projects from sports ovals to hospital upgrades.
On Monday, it announced another round of $10,000 grants for small businesses, and $3000 grants for sole traders and partnerships.
But there are still a raft of unanswered questions:
HOW BIG IS THE BUDGET BLACK HOLE?
In June The Advertiser revealed South Australia’s budget black hole was forecast to hit a massive $1.9 billion this year as debt soars toward $30 billion. Will the numbers get even uglier, or has the Treasurer found some savings?
WILL SOUTH ROAD GET TUNNELS?
The North-South Corridor is the largest infrastructure project in the state’s history.
There is just 10.5 km to go, although it is the most difficult stretch.
Will the government commit to the more expensive tunnel option and at what cost?
HOW DO WE REPLACE THE SUPERLOOP?
It seems inconceivable that Premier Steven Marshall would kill off the super popular Superloop V8 race through Adelaide streets without something very special – and economic driving – to replace it. What will be the promised ‘suite of events’ to replace it?
CAN WE EXPECT CUTS TO THE PUBLIC SERVICE?
Any deficit less than $1.9bn will require some savings – or increased revenue.
Savings can instead be expected to come from government departments and agencies.
Cuts to public transport, Service SA centres and TAFE have been included in previous budgets before backflips.
What public sector services can expect a cut this time?
IS THERE A WOW-FACTOR PROJECT?
Much of the talk in the lead-up to the budget has been focused on shovel-ready projects that can be out the door within two years.
But the State Government has also come under fire for failing to come up with any fresh big ideas.
Will there be a big ‘wow factor’-project that will excite South Australians for many years to come?
JUST HOW UNHEALTHY IS THE HEALTH BUDGET?
COVID-19 has put an economic wrecking ball through all government departments – with a particular focus on the state’s biggest and most expensive, health.
An Auditor-General’s report recently showed a $547m overspend against the total expenses of $6.3bn, with only $55m related to COVID.
It seems health continues to have trouble and it raises other questions about what shape the state’s bottom line was in before the pandemic hit.
WHAT SPORTS WILL GET BIG STADIUM UPGRADES?
Grassroots sports clubs have been promised an extra $25 million for upgrades.
But speculation is rife Hindmarsh Stadium, netball’s Priceline Stadium and tennis infrastructure along Memorial Drive are in the running for bucket loads of cash in the order of $30 to $50 million each.
Or was the Treasurer throwing everyone off the scent when he ruled out a new covered multipurpose stadium earlier in the year?
HOW MUCH EXTRA WILL TAXPAYERS COUGH UP?
At a time when many South Australians are feeling the economic impacts of the coronavirus it’s hard to see how Mr Lucas can deliver too much hip-pocket pain.
But plugging a record black hole will require more than just savings. There’s already been calls to freeze government fees and charges.
If that’s not done, where will the relief come from?
WHAT SUPPORT IS COMING FOR HARD-HIT SECTORS?
Tourism, hospitality and the arts have been severely impacted by the coronavirus pandemic.
The industry estimates the sector is still losing around $453 million on average each month in tourism spending across SA.
A voucher scheme was labelled by some as missing the mark.
Will that get a rethink and what could version 2.0 look like?
WHAT WILL THE GOVERNMENT TRY TO KEEP QUIET?
The devil is always in the detail when it comes to state and federal budgets.
Positive announcements are front and centre of the budget speech.
Piles of press releases will be full of terms like “record spending”, “nation-leading” and “South Australia’s history.”
But over the coming days and weeks the full impact of decisions are expected to surface.