State Budget 2018: Treasurer says Budget delivers election promises and infrastructure boom

WANT to know what State Budget means? Watch our LIVE STREAM from the Budget briefing breakfast at Wrest Point.

TREASURER Peter Gutwein has unveiled a massive infrastructure spend in a State Budget he says “ticks all the boxes”.

Under the theme of “Delivering on our plan, building your future”, Mr Gutwein said the 2018-19 Budget chartered a course for continued good economic times.

He said the Budget delivered the Liberals’ election promises “in full and on time”.

“Compared to where we were in 2014, today Tasmania is almost unrecognisable,” he told State Parliament.

“There is a buzz in the air, the confidence is contagious, and people are excited about what the future will bring.”

MORE STATE BUDGET COVERAGE:

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TAX HIT FOR FOREIGN BURYS OF RURAL LAND

FOREIGN INVESTOR DUTY SURCHARGE FOR HOUSING

MAJOR COST BLOWOUT HITS HEALTH BUDGET

TASMANIA POLICE DRONES TAKE TO THE AIR

HOW THE STATE BUDGET AFFECTS YOUR REGION

COMMUNITY LEADERS RESPOND TO BUDGET

‘IT’S TIME FOR THIS BUILDING TO HAVE A NEW LIFE’

MONEY FOR NEW POLICE STATIONS, NORTHERN PRISON

FUNDING TO START WORK ON TWO NEW SCHOOLS

HUNT ON FOR NEXT ICONIC TASSIE WALK

HEALTH HIT BY MAJOR COST BLOWOUT

BY THE NUMBERS 2018-19 STATE BUDGET AT A GLANCE Surplus: 161 million, up 115 per cent. Revenue: $6.22 billion, up 3 per cent. Expenditure: 6.06 billion, up 1.6 per cent Growth: predicated to be 2.25 per cent Unemployment: expected to remain steady at 6 per cent. Population growth: 0.7 per cent – around 3600 more people.

Mr Gutwein emphasised that the Budget delivered hundreds of millions of dollars worth of Liberal election promises over the term of the government – and a record infrastructure spend.

There was $2.6 billion in infrastructure spending over the four years and a prediction of 9300 extra jobs.

The Treasurer forecast four consecutive surpluses, totalling $620 million, over the term of this government.

Next year’s predicted surplus of $161 million represents a 115 per cent improvement on the 2017-18 financial year’s expected result of $75 million.

MORE: GUTWEIN REVEALS BOOST TO BUDGET BOTTOM LINE

Treasurer Peter Gutwein and Premier Will Hodgman at the State Budget press conference. Picture: DAVID KILLICK

Boosted by a housing boom and increased payroll tax, government revenues will rise 3 per cent, from $6.04 billion to $6.22 billion, while spending will increase 1.6 per cent, from $5.96 billion to $6.06 billion.

It is a budget strongly dependent on continued economic good fortune: the vagaries of the global economy, changes to GST, adverse movements in exchange rates or the impact of public sector wage increases.

The big spend on infrastructure and election promises will see the state’s cash reserves drained to the lowest level in more than a decade.

Negative net debt – the amount of cash reserves the government has in the bank – will drop from $329.6 million in 2019 to just $51.6 million in 2022.

Mr Gutwein said he was confident that strong economic performance would see that figure revised upwards.

In contrast to the surpluses headlined by Mr Gutwein, the underlying net operating balance – which is preferred by some economists because it takes into account the influence of one-off federal government spending – remains in deficit.

While the underlying net operating balance improves from a defecit of $96.7 million to $4.5 million it will not return to surplus until 2021-22.

The state’s bottom line will be propped up with a $15 million “special dividend” from Sustainable Timbers Tasmania and $67 million from Hydro Tasmania, and $50 million from the coffers of the Motor Accidents Insurance Board.

The Budget made conservative predictions for growth: 2.25 per cent in the year ahead for gross state product and 3.25 per cent for state final demand, steady unemployment at 6 per cent and a 0.7 per cent annual increase in population – a net increase of around 3650 people.