Budget outlook improvement on May’s doom and gloom

Premier Peter Gutwein remains upbeat about the state’s financial future, but has acknowledged Tasmania will be shouldering more debt due to support packages and a lack of revenue. REWATCH THE UPDATE >>

TASMANIA’S economic outlook is not the doom and gloom predicted in the first COVID-19 budget update in May.

Premier Peter Gutwein said jobs have increased and a $3.1 billion infrastructure blitz have helped buoy the volatile, post-virus economy.

Originally Tasmania’s budget deficit was predicted to be more than $700m, but has now dropped to just over $200m.

REWATCH THE UPDATE LIVE BELOW >>

“In terms of the second economic and fiscal update ... I would make the point that we are the only state that has taken these steps to be transparent,” he said.

“In May of 2020, in the first economic and fiscal update we announced, and we were very clear the pandemic would have a significant impact ... and the state budget in a fiscal sense.

“Importantly today, the numbers that I’m releasing are an improvement on what we were originally forecasting in May.”

Mr Gutwein said the state remains in a net positive cash and investment situation.

“Our debt does increase over the next 12 months, I’ve made no secret about that. We have been impacted in terms of our revenues but also in terms of our support packages.”

REWATCH THE UPDATE >>

Originally published as Budget outlook improvement on May’s doom and gloom