Labor condemns $8.5bn debt blowout in Thursday’s Tasmanian state budget

Labor has accused the Liberals of putting Tasmania’s future “on the credit card” after revelations government net debt will more than double in Thursday’s state budget.

Opposition leader Dean Winter.

Labor has accused the Liberals of putting the state’s future “on the credit card” after revelations government debt will more than double in Thursday’s state budget.

Treasurer Michael Ferguson revealed on Tuesday net debt will blow out from $3.5bn in 2023/24 to $8.5bn in 2027/28.

In state parliament on Wednesday, Opposition leader Dean Winter said the government had plunged the state into debt.

“You’ve admitted that after 10 years you’ve completely lost control of your budget after inheriting zero net debt when you’re elected,” he said.

“You’ve admitted today that you’re now on track to rack up $8.5bn worth of debt.

“You’ll be spending more on interest repayments than on the entire Department of Police, Fire and Emergency Management.

“You need to explain your selfish and shortsighted decision to put all of the state’s problems on the credit card – in doing so, you’ve mortgaged Tasmania’s future.”

Premier Jeremy Rockliff said it was essential for the government to invest to keep Tasmanians “alive well and in work”.

“We have chartered a sensible pathway to surplus and we will continue to do so,” he said.

“Now is not the time to reduce investment in those key priority areas.

“Now is not the time to reduce investment in supporting Tasmanians through a cost of living crisis.

Mr Rockliff flagged several measures to be included in the budget to help Tasmanians who are doing it tough.

”Tomorrow’s budget will deliver $460m of concessions aimed at helping vulnerable Tasmanians,” he said.

What we will also include in our budget tomorrow, is $110m in new mental health beds. “Globally, we’re facing enormous challenges post-pandemic when it comes to the mental health and wellbeing of communities across the globe and here in Tasmania.

“So tomorrow, Minister, we will be delivering investments in those key areas of priority, of mental health beds, for example, we will also include an additional $20m to maintain social homes across Tasmania, over and above existing investment on maintenance.”

Mr Rockliff said the debt being taken on by the government was” manageable”.