SA Treasurer Stephen Mullighan reveals budget surplus has taken a hit with Whyalla rescue and drought package

Whyalla’s rescue package and drought-stricken rural regions are giving the Treasurer’s budget a whack. It’s budget day, see what has been promised so far.

Treasurer Stephen Mullighan says the surplus has taken a hit. Picture Mark Brake

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Treasurer Stephen Mullighan reveals the state’s surplus has taken an around $180m hit largely due to the Whyalla bailout and drought packages in an exclusive interview ahead of the State Budget.

Two major rescue packages for the Whyalla steelworks and drought-stricken farmers jointly raided the projected $201m surplus for 2024-2025 announced in the mid-year budget review.

They left a thin wedge of $18m in government coffers but Mr Mullighan was confident of delivering a new surplus of $179m in the upcoming financial year leading to next March’s State Election.

“The budget will deliver the government’s third surplus,” Mr Mullighan said.

“Having a decent surplus in the hundreds of millions and then seeing it whittled down is quite sensible …. It gives you the capacity to respond at relatively short notice when needed to the economic issues like Whyalla and drought.”

While $200m was sliced off the surplus for the Whyalla steelworks and mine rescue package and another $50m for the latest drought package over three years, Mr Mullighan said stronger than expected revenue helped anchor the budget in the black.

He warned against expecting any significant new project announcement in the budget with the massive Torrens to Darlington South Road project and new Women’s and Children’s Hospital building hoovering infrastructure cash.

Treasurer Stephen Mullighan working in his office at the State Administration Building preparing the June 5 State Budget. Picture: Mark Brake

But the government has already promised $125m toward removing the Curtis Road level crossing in Munno Parra in today’s budget, matching the Federal Government’s $125m commitment.

“It’s a pre-election budget, but it’s not going to be a budget where we’re kind of announcing our election manifesto,” Mr Mullighan said.

“I think both now and in the election campaign, we’re not going to see significant new commitments to infrastructure or capital spending.

“I can put this cryptically, you’ll see how we respond to some of the money that the federal government put on the table at the pre-election budget.”

This could signal new funds for the long-awaited freight bypass that would divert an estimated 420,000 trucks a year from the likes of Portrush Road and Cross Road in Adelaide.

The federal government committed $525m over 10 years to deliver the Greater Adelaide Freight Bypass at its pre-election budget but it was expected the State Government would need to match its commitment for the more than $1bn project.

Law and order was running hot with extra money for prisons, replacing police guns and for exporters already allocated in a flurry of pre-budget announcements.

On Wednesday, the government said it would spend $17.8m to double the number of motorcycle officers in SA to 66.

Another $13.9m also was announced over five years to expand a pilot program where mental health nurses respond to triple zero calls with police officers.

And there is a 4.2 per cent rise in the state emergency levy.

Mr Mullighan said there had been several contingency funds squirrelled away in today’s budget.

There was $8m set aside to begin the mammoth task of planning for the global COP31 climate change conference if Adelaide wrestles hosting the United Nations event away from Turkey, while health would again take out about 30 per cent the budget.

Originally published as SA Treasurer Stephen Mullighan reveals budget surplus has taken a hit with Whyalla rescue and drought package