Treasurer Peter Gutwein shows surplus shrinks, net debt to increase
Tasmania’s net operating surplus for this financial year has shrunk more than $150 million to about $7 million.
Tasmania
Don't miss out on the headlines from Tasmania. Followed categories will be added to My News.
TASMANIA’S net operating surplus for this financial year has shrunk more than $150 million to about $7 million since the budget was released — a decrease the Treasurer has attributed to increased health, justice and infrastructure spending.
And, according to the Revised Budget Report 2018-19 released by Peter Gutwein yesterday, Tasmania’s net debt is expected to soar to more than $343 million by 2021-22.
That was well above the $51.6 million forecast in the 2018-19 budget’s forward estimates.
But Mr Gutwein was optimistic about the outlook yesterday.
“The budget will remain in surplus and as a government we will always spend less than we earn,” Mr Gutwein said.
“The reason you frame budgets with surpluses is so you have capacity to meet need.
“Obviously in this case we’ve had significant additional investment into health and we’ve utilised the services for that, so we’ve employed more nurses and more doctors to provide services to Tasmanians.”
The Government spent an extra $105 million this financial year to meet health demand, gave $20 million to Communities Tasmania for out-of-home care services and handed the Justice department $5.5 million to meet prison demand pressures.
But Shadow Treasurer Scott Bacon accused Mr Gutwein of blowing the budget without actually meeting the state’s needs.
“Peter Gutwein as Treasurer has managed to blow the surplus in the Tasmanian budget and have us headed to $350 million worth of debt while he hasn’t managed to fix the crisis in our hospital system, the housing crisis, or in fact even pay teachers and nurses and other hardworking public servants what they deserve,” Mr Bacon said.
Risks to the budget outlined in yesterday’s report included changes to the GST distribution method that could negatively impact on Tasmania, public sector wages and a downturn in China’s economy, with that country the state’s main trading partner.
Forecast GST revenue decreased by $72.1 million, but Mr Gutwein said the decline was “very manageable”.
The Treasurer appeared cagey on public sector wage increases, which the Government has capped at 2 per cent. He and Premier Will Hodgman are meeting with unions today.
“We’ve got a 2 per cent [increase] factored in and we’ll be having further discussions with the unions tomorrow about the budget,” Mr Gutwein said.
‘Abominable’: Tasman mayor lashes internet and phone coverage
In the summer months the Tasman Peninsula swells with tourists, Read why the addition of cruise ship visitors is causing serious problems for businesses and locals.
Eat Pray Love this place: Why famous author is mad for Tassie
Her books have sold millions of copies around the world but Eat Pray Love author Elizabeth Gilbert says one place in particular has cast a spell on her – Tasmania.