The Tasmanian Government has officially handed down its 2023-24 state budget.
Premier Jeremy Rockliff said the “budget for the times” includes record investments in key areas and a focus on supporting Tasmanians through the current economic climate.
“This is a budget that is good for the economy, good for services and ensures that life is affordable for Tasmanians,” he said.
The budget, the first since this year’s state election, will require government departments to cut back on spending, with a total of $300 million in savings targeted over the next four years.
The Health Department will need to find $134.9 million in savings over the next three years, while the Education Department is expected to cut $81 million.
The Police, Fire and Emergency Management department has been set a target of $23.4 million in savings, Justice Department $17 million and State Growth $15 million.
The Director of Public Prosecutions will need to cut $500,000 and the Governor and Integrity Commission $100,000 each.
The budget also includes significant investments in infrastructure, totalling $5.1 billion over the next four years.
This covers $1.9 billion for roads and bridges, $649.6 million for health and hospitals and $359.2 million for schools, education and skills.
At a glance: The key numbers from Tasmania’s 2024/25 state budget
$1.3 billion in funding for election commitments over four years is included in the budget, as is $355 million of the state’s $375 million contribution to a new $715 million, 23,000-seat Macquarie Point Stadium.
Treasurer Michael Ferguson said the government is “prepared to take the criticism” about maintaining its infrastructure pipeline.
“We don’t apologise for it. We need those jobs. We need that infrastructure,” he said.
“When we came to office, Jeremy and I, out of opposition into government, we were dealing with a situation where lots of legacy underinvestment and worn out assets was the order of the day.”
“I was a schoolteacher in those schools. Those classrooms were worn out and they had heaters that didn’t work.”
“We’ve dealt with a growing population and its needs for stronger infrastructure.”
He acknowledged the state’s debt position, saying it is manageable and among the lowest in the country.
The budget forecasts net debt to rise from $3.5 billion in 2023/24 to $8.6 billion in 2027/28.
“We believe that our state can afford and can manage within these levels of borrowings. We’ll continue to take a prudent view,” he said.
“Together [we] will continue to do everything possible as a Liberal Government to carefully manage the public purse and to ensure that we protect the economic growth that we have worked so hard for over the last ten years.”
Key figures from the state budget
Deficit: $793 million
Revenue: $8.95 billion
Expenditure: $9.7 billion
Net debt: $5.4 billion
GST revenue: $3.52 billion
Unemployment: 4.25%
Economic growth (2023/24): 2%
