Shadow Treasurer Josh Willie has torn into Treasurer Guy Barnett’s first budget, labelling it the “worst” and most “unsustainable” in Tasmania’s history.
“Debt is spiralling out of control. There is no pathway to surplus,” he said.
“We are spending more on debt servicing costs than we are on ambulance services and emergency services combined.”
“There is so much debt in this budget that it equates to $47,000 for each Tasmanian household.”
The government handed down a $10.46 billion budget with a forecast deficit of $1.008 billion on Thursday. Spending is set to rise by 7.34%, while revenue is expected to grow by 5.59% to $9.452 billion.
The deficit is tipped to shrink over the coming years, dropping to $850.1 million in 2026–27, then $396.5 million and $236 million before returning to surplus in 2029–30.
Net debt is expected to climb from $7.361 billion this year to $10.789 billion by the end of the decade.
Willie squarely blamed the state government, saying the Liberals had lost all credibility when it comes to managing the state’s finances.
He also took aim at plans to potentially sell off several state-owned businesses.
“It will actually make the problem worse. If they sell off government assets, government businesses, you reduce the capacity of the budget to pay for schools and hospitals,” Willie said.
Willie said Labor would deliver a more detailed response during Budget Reply Week, but warned the current path was “mortgaging Tasmania’s future with unsustainable debt levels”.
