Treasurer Peter Gutwein reveals $21 million boost to Budget bottom line

AS he prepares to hand down his fifth budget, Treasurer Peter Gutwein says his fourth budget had turned out even better than expected.

Treasurer Peter Gutwein says the state’s budget surplus is even better than forecast. Picture: SAM ROSEWARNE

AS he prepares to hand down his fifth budget, Treasurer Peter Gutwein says his fourth budget had turned out even better than expected.

Mr Gutwein told State Parliament that the surplus he said he would deliver in last year’s budget had increased by 39 per cent.

The 2017-18 budget surplus, which was predicted to be $54 million actually came in at $75 million, Mr Gutwein said.

“Tomorrow’s Budget contains an update on this year’s performance and I am pleased that last year’s budget forecast of a $54 million surplus will be surpassed for the 2017-18 financial year.

“I can advise the estimated outcome for 2017-18 will be a significant improvement with the forecast now showing a surplus of $75 million.”

And he said Thursday’s budget would be even better for the state.

“The 2018-19 Budget … will deliver on all our commitments to build Tasmania’s future and continue our track record of strong financial management,” he said.

“Over the last four years we have built a strong financial platform and have laid the foundations to take Tasmania to the next level.

“This Budget will underpin our booming economy, strengthen business confidence, investment and job creation.”

Labor Treasury spokesman Scott Bacon says the budget still has an underlying deficit.

But the State Opposition cast doubt on Mr Gutwein’s figures, saying the underlying result was an emphatic deficit.

“The Tasmanian Treasurer claimed the budget has never been in better shape. He did so while Tasmania’s budget revenue is as uncertain as it has ever been,” Labor Treasury spokesman Scott Bacon said.

“He did so while his budget is still in underlying deficit.

“The revised estimates report showed an underlying deficit of $136.4 million for 2017-18.”

Mr Bacon said the revenue assumptions in Thursday’s budget would be built on an uncertain foundation as GST revenues remained under threat.

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“The Treasurer has accepted Malcolm Turnbull’s guarantee given in a radio interview as enough to justify the development and release of a budget that is reliant on the GST for 40 per cent of revenue.

“This is a dangerous and cavalier approach.”