Latest news with #GuyBarnett
ABC News
3 days ago
- Business
- ABC News
Tasmanian government's road to budget surplus appears built on dreams and optimism
It's the Tasmanian government's yellow brick road — a pathway that will lead to all wishes coming true or, in this case, a surplus. But just like the one in the famous tale The Wizard of Oz, Treasurer Guy Barnett's "sensible pathway to surplus" appears almost fantastical, or at least extremely optimistic. It is built on the dream of selling public companies that may not be worth selling (or possible to sell); arguably unrealistic cuts to spending and a vague plan to reduce the public service. Perhaps it would be more believable if the government had not promised to reduce spending in the past, only to fail dramatically. But here are the undeniable facts. Tasmania's net debt is expected to reach $7.3 billion in the upcoming financial year. In four years, that debt is projected to balloon to almost $10.8 billion, at which point the interest repayments are expected to rise to almost $650 million a year. Labor says that is more than we spend on ambulance and emergency services combined. The forward estimates continue to see Tasmania operating in deficit, albeit reducing to $236 million in 2027-28. And those forward estimates have not proven to be reliable. Last year, the government planned to cap spending at $9.7 billion — and then out-spent that by another half a billion dollars, despite having an efficiency dividend and hiring freeze in place. Independent economist Saul Eslake did not hold back in his assessment of the budget, describing it as presenting an "upbeat view" of the economy that "may not come to pass". "The government is in the financial pickle it's now in because it kept increasing spending without giving any thought as to how that spending (however justified) should be paid for," he wrote. "And this budget shows it still hasn't been able to break that habit." The Tasmanian Chamber of Commerce and Industry likewise pointed out the pathway to surplus was only achievable if the government stuck to its spending promises. "In recent years, the final budget result each financial year has proven to be much worse than the budget estimate," TCCI chief executive Michael Bailey said. "At the very least, the Tasmanian government needs to at least stick to its budget and ensure it shows the fiscal discipline to make sure the final result is not worse than the already significant deficit forecast for 2025-26. The problem with the government's plan to cut spending is, it may not always be realistic. Take health — the main reason the government blew its budget this financial year. There is growing demand on the health system, but the budget assumes next year's spending will be roughly the same as this year's, which rarely happens. It also assumes in three years' time, overall government expenses will be less than they are this year. And it leaves little room for surprise events like state elections. Tasmania could barely afford big campaign promises back when elections were held every four years, let alone when they are called early. Part of the government's plan to cut spending is through the recently announced Efficiency and Productivity Unit (EPU). It will oversee the productivity and efficiency measures that will replace the efficiency dividend in 2027-28. The EPU's task is to find $150 million in savings each year from then. The difference is the way it will approach these efficiencies. The dividend required every department to make cuts, whereas the new approach, which the EPU will drive, will apparently be a more targeted "evidence-based" one. That received praise from Mr Eslake, although it came with a qualifier: "Assuming that EPU isn't a Tasmanian version of Elon Musk's DOGE." The problem is, while the government is relying on efficiencies to help it get back on track, it has no clue where it will find them and is optimistically hoping to exceed its targets. It wants to cut the number of public servants by 2,500, bringing the sector back to 2022-23 levels, a measure announced in last year's budget. Unsurprisingly, it drew the ire of Jessica Munday from Unions Tasmania. "It is just completely fanciful. If the government were looking for a road map to take Tasmania forward, this is not it. "If you have tried to access one [of] our public hospitals, if you've got a kid in one of our public schools, despite the best efforts of workers, you know how much pressure they are under. When asked about plans to cut staff, Mr Barnett spoke in the press conference largely about the COVID-19 pandemic, as though there are a spare 2,500 staff still hanging around on the public dollar with little to do since 2021. He pointed out that in the past five years, the Tasmanian population had grown by just 5 per cent, and the public service by 18 per cent. "We do need a right-size public service," he said. "We've obviously been through COVID, we had to save lives, we had to save livelihoods, we did the job and I think most in the community would say we got there. Selling assets is another part of the plan — but it is unclear which ones will be sold or if it is even possible. Mr Eslake is no doubt relieved that the government has taken his advice on board this time, ruling out selling the same list he had in the 'no' pile, plus TT-Line and Hydro Tasmania. He is now taking a closer looking at the potential sale of the remaining government business enterprises (GBE). That does not mean he will suggest they are worth selling — there could very well be another 'no-go' list to come out of this report. Assuming he can identify some that may do better in public hands, and benefit the budget, the government then has that pesky issue of being in minority. That is a problem because many of those GBEs will need parliamentary approval to be sold and Labor, plus most of the crossbench, are dead-set against that idea. There are some, including Aurora, that do not need parliamentary approval to be sold off — though Labor has plans to try and change that. And it is not just GBEs on the chopping block. The government will fill the coffers through the sale of Crown Land, not to mention the Treasury building. The sale of all these, of course, may provide little more than a sugar hit. But perhaps this is all a bit too cynical. Maybe it will work out? There are likely a lot of inefficiencies that can be found in the public service (the problem is solving them will cost money up-front). Maybe there are programs and jobs that are no longer needed and are just waiting to be cut? Maybe companies like Metro and Aurora will be better off in private hands and the government will somehow convince the crossbench of that — and then the state will make a mint? But it seems that only when we get to the end of this road (in 2029-30) will we know if that surplus was a mirage all along.
The Advertiser
4 days ago
- Business
- The Advertiser
Liberal debt to double, state companies face sell-off
A state Liberal government will more than double debt while funding a new-build stadium and aim to rely on potential asset sales and a public service "efficiency unit" to find money. Tasmania's Treasurer Guy Barnett delivered the 2025/26 budget on Thursday, his first in the role for his party which has been in power for 11 years. It forecasts net debt more than doubling from $5.3 billion in 2024/25 to $10.8 billion in 2028/29, at a steeper trajectory than predicted in last year's budget. Mr Barnett said the amount of debt was manageable and necessary so the state could invest in economy-boosting infrastructure and increase health and education funding. The budget spells out more than $600 million of funding for a new waterfront stadium in Hobart, a condition of the Tasmania Devils entering the AFL in 2028. The venue's estimated cost recently blew out from $775 million to $945 million. The budget doesn't include $300 million in state government borrowings needed to make up a funding gap. The state previously pledged $375 million towards the stadium, while the federal government is chipping in $240 million and the AFL $15 million. The budget estimates a $1.01 billion deficit in 2025/26 will improve to a $236 million deficit in 2028/29. Mr Barnett claimed his government was on a "sensible path" to deliver a surplus in 2029/30, one year beyond the financial modelling of the budget. Labor opposition MP Josh Willie said it was the worst budget in the state's history. "When the Liberals came to office in 2014, Tasmania had $208 million in the bank," he said. "Now ... Tasmania is staring down the barrel of almost $11 billion worth of net debt." The Liberals also face kickback from unions after revealing more details about potential state-owned business sales. The sale of some businesses has been ruled out but about a dozen remain under assessment, including bus operator Metro Tasmania and power provider TasNetworks. Funds from potential sales haven't been modelled in the budget. Shedding of some of the businesses would have to be green lit by a parliament in which the Liberals have a minority. Several independent MPs on the crossbench gave a scathing assessment of the budget, with one labelling it "alarming". Crown land could also be sold to help the state return to surplus and pay down debt, Mr Barnett said. An efficiency and productivity unit, which has been likened to measures implemented by US President Donald Trump, will review government programs. The unit will find savings of $150 million per year, while there is a freeze on hiring of non-essential public sector workers. The government said it planned to cut 2500 public servant jobs by 2032/33. Public sector wages, including superannuation, are the largest operating expenditure item for the government, making up 46 per cent of total operating expenditure in 2024/25. Global credit ratings agency S&P said Tasmania's AA+ position had shifted from stable to negative, citing weaker financial outcomes and a rising debt burden. As a percentage of gross state product, Tasmania's debt is the fifth worst of Australian states and territories. TASMANIA'S BUDGET 2025/26: * Deficit: $1.01 billion * Revenue: $9.5 billion * Expenditure: $10.5 billion * Net debt: $7.4 billion * GST revenue: $3.8 billion * Unemployment: 3.8 per cent * Five biggest spending areas: health (34 per cent), education (23), public order and safety (nine), general public services (eight) and social protection (seven) A state Liberal government will more than double debt while funding a new-build stadium and aim to rely on potential asset sales and a public service "efficiency unit" to find money. Tasmania's Treasurer Guy Barnett delivered the 2025/26 budget on Thursday, his first in the role for his party which has been in power for 11 years. It forecasts net debt more than doubling from $5.3 billion in 2024/25 to $10.8 billion in 2028/29, at a steeper trajectory than predicted in last year's budget. Mr Barnett said the amount of debt was manageable and necessary so the state could invest in economy-boosting infrastructure and increase health and education funding. The budget spells out more than $600 million of funding for a new waterfront stadium in Hobart, a condition of the Tasmania Devils entering the AFL in 2028. The venue's estimated cost recently blew out from $775 million to $945 million. The budget doesn't include $300 million in state government borrowings needed to make up a funding gap. The state previously pledged $375 million towards the stadium, while the federal government is chipping in $240 million and the AFL $15 million. The budget estimates a $1.01 billion deficit in 2025/26 will improve to a $236 million deficit in 2028/29. Mr Barnett claimed his government was on a "sensible path" to deliver a surplus in 2029/30, one year beyond the financial modelling of the budget. Labor opposition MP Josh Willie said it was the worst budget in the state's history. "When the Liberals came to office in 2014, Tasmania had $208 million in the bank," he said. "Now ... Tasmania is staring down the barrel of almost $11 billion worth of net debt." The Liberals also face kickback from unions after revealing more details about potential state-owned business sales. The sale of some businesses has been ruled out but about a dozen remain under assessment, including bus operator Metro Tasmania and power provider TasNetworks. Funds from potential sales haven't been modelled in the budget. Shedding of some of the businesses would have to be green lit by a parliament in which the Liberals have a minority. Several independent MPs on the crossbench gave a scathing assessment of the budget, with one labelling it "alarming". Crown land could also be sold to help the state return to surplus and pay down debt, Mr Barnett said. An efficiency and productivity unit, which has been likened to measures implemented by US President Donald Trump, will review government programs. The unit will find savings of $150 million per year, while there is a freeze on hiring of non-essential public sector workers. The government said it planned to cut 2500 public servant jobs by 2032/33. Public sector wages, including superannuation, are the largest operating expenditure item for the government, making up 46 per cent of total operating expenditure in 2024/25. Global credit ratings agency S&P said Tasmania's AA+ position had shifted from stable to negative, citing weaker financial outcomes and a rising debt burden. As a percentage of gross state product, Tasmania's debt is the fifth worst of Australian states and territories. TASMANIA'S BUDGET 2025/26: * Deficit: $1.01 billion * Revenue: $9.5 billion * Expenditure: $10.5 billion * Net debt: $7.4 billion * GST revenue: $3.8 billion * Unemployment: 3.8 per cent * Five biggest spending areas: health (34 per cent), education (23), public order and safety (nine), general public services (eight) and social protection (seven) A state Liberal government will more than double debt while funding a new-build stadium and aim to rely on potential asset sales and a public service "efficiency unit" to find money. Tasmania's Treasurer Guy Barnett delivered the 2025/26 budget on Thursday, his first in the role for his party which has been in power for 11 years. It forecasts net debt more than doubling from $5.3 billion in 2024/25 to $10.8 billion in 2028/29, at a steeper trajectory than predicted in last year's budget. Mr Barnett said the amount of debt was manageable and necessary so the state could invest in economy-boosting infrastructure and increase health and education funding. The budget spells out more than $600 million of funding for a new waterfront stadium in Hobart, a condition of the Tasmania Devils entering the AFL in 2028. The venue's estimated cost recently blew out from $775 million to $945 million. The budget doesn't include $300 million in state government borrowings needed to make up a funding gap. The state previously pledged $375 million towards the stadium, while the federal government is chipping in $240 million and the AFL $15 million. The budget estimates a $1.01 billion deficit in 2025/26 will improve to a $236 million deficit in 2028/29. Mr Barnett claimed his government was on a "sensible path" to deliver a surplus in 2029/30, one year beyond the financial modelling of the budget. Labor opposition MP Josh Willie said it was the worst budget in the state's history. "When the Liberals came to office in 2014, Tasmania had $208 million in the bank," he said. "Now ... Tasmania is staring down the barrel of almost $11 billion worth of net debt." The Liberals also face kickback from unions after revealing more details about potential state-owned business sales. The sale of some businesses has been ruled out but about a dozen remain under assessment, including bus operator Metro Tasmania and power provider TasNetworks. Funds from potential sales haven't been modelled in the budget. Shedding of some of the businesses would have to be green lit by a parliament in which the Liberals have a minority. Several independent MPs on the crossbench gave a scathing assessment of the budget, with one labelling it "alarming". Crown land could also be sold to help the state return to surplus and pay down debt, Mr Barnett said. An efficiency and productivity unit, which has been likened to measures implemented by US President Donald Trump, will review government programs. The unit will find savings of $150 million per year, while there is a freeze on hiring of non-essential public sector workers. The government said it planned to cut 2500 public servant jobs by 2032/33. Public sector wages, including superannuation, are the largest operating expenditure item for the government, making up 46 per cent of total operating expenditure in 2024/25. Global credit ratings agency S&P said Tasmania's AA+ position had shifted from stable to negative, citing weaker financial outcomes and a rising debt burden. As a percentage of gross state product, Tasmania's debt is the fifth worst of Australian states and territories. TASMANIA'S BUDGET 2025/26: * Deficit: $1.01 billion * Revenue: $9.5 billion * Expenditure: $10.5 billion * Net debt: $7.4 billion * GST revenue: $3.8 billion * Unemployment: 3.8 per cent * Five biggest spending areas: health (34 per cent), education (23), public order and safety (nine), general public services (eight) and social protection (seven) A state Liberal government will more than double debt while funding a new-build stadium and aim to rely on potential asset sales and a public service "efficiency unit" to find money. Tasmania's Treasurer Guy Barnett delivered the 2025/26 budget on Thursday, his first in the role for his party which has been in power for 11 years. It forecasts net debt more than doubling from $5.3 billion in 2024/25 to $10.8 billion in 2028/29, at a steeper trajectory than predicted in last year's budget. Mr Barnett said the amount of debt was manageable and necessary so the state could invest in economy-boosting infrastructure and increase health and education funding. The budget spells out more than $600 million of funding for a new waterfront stadium in Hobart, a condition of the Tasmania Devils entering the AFL in 2028. The venue's estimated cost recently blew out from $775 million to $945 million. The budget doesn't include $300 million in state government borrowings needed to make up a funding gap. The state previously pledged $375 million towards the stadium, while the federal government is chipping in $240 million and the AFL $15 million. The budget estimates a $1.01 billion deficit in 2025/26 will improve to a $236 million deficit in 2028/29. Mr Barnett claimed his government was on a "sensible path" to deliver a surplus in 2029/30, one year beyond the financial modelling of the budget. Labor opposition MP Josh Willie said it was the worst budget in the state's history. "When the Liberals came to office in 2014, Tasmania had $208 million in the bank," he said. "Now ... Tasmania is staring down the barrel of almost $11 billion worth of net debt." The Liberals also face kickback from unions after revealing more details about potential state-owned business sales. The sale of some businesses has been ruled out but about a dozen remain under assessment, including bus operator Metro Tasmania and power provider TasNetworks. Funds from potential sales haven't been modelled in the budget. Shedding of some of the businesses would have to be green lit by a parliament in which the Liberals have a minority. Several independent MPs on the crossbench gave a scathing assessment of the budget, with one labelling it "alarming". Crown land could also be sold to help the state return to surplus and pay down debt, Mr Barnett said. An efficiency and productivity unit, which has been likened to measures implemented by US President Donald Trump, will review government programs. The unit will find savings of $150 million per year, while there is a freeze on hiring of non-essential public sector workers. The government said it planned to cut 2500 public servant jobs by 2032/33. Public sector wages, including superannuation, are the largest operating expenditure item for the government, making up 46 per cent of total operating expenditure in 2024/25. Global credit ratings agency S&P said Tasmania's AA+ position had shifted from stable to negative, citing weaker financial outcomes and a rising debt burden. As a percentage of gross state product, Tasmania's debt is the fifth worst of Australian states and territories. TASMANIA'S BUDGET 2025/26: * Deficit: $1.01 billion * Revenue: $9.5 billion * Expenditure: $10.5 billion * Net debt: $7.4 billion * GST revenue: $3.8 billion * Unemployment: 3.8 per cent * Five biggest spending areas: health (34 per cent), education (23), public order and safety (nine), general public services (eight) and social protection (seven)
ABC News
4 days ago
- Business
- ABC News
Tasmanian state budget flags big challenges, with major savings that must be found
A self-described "ambitious reform agenda" that relies on cutting the public service and selling state-owned assets underlies Tasmanian Treasurer Guy Barnett's budget. The 2025-26 budget makes it clear that debt is ballooning, and puts it down to a number of things including increased demand on the health system, implementing recommendations from the child sexual abuse inquiry and the ongoing financial impact of the pandemic. With little new revenue on the horizon, the government is looking to sell off government businesses and find efficiencies in the public service. The recently announced Efficiency and Productivity Unit (EPU) will play a large role in that. It is in charge of finding at least $150 million in ongoing savings from the 2027-28 financial year. But while the government is determined to speed up its pathway to surplus, that plan is largely reliant on future unknowns. The government continues to have the same problem — spending more than it is earning. This financial year, Tasmania is predicted to make about $9.5 billion in revenue, and spend $10.5 billion. This means the net operating deficit is about $1 billion. Remove the Australian government's one-off contributions to infrastructure projects and the figure is worse, with a fiscal deficit of $1.3 billion. The state's net debt is expected to reach $7.3 billion in the upcoming financial year. In four years' time, it is projected to balloon to almost $10.8 billion. The interest repayments on that debt are growing and expected to rise to almost $650 million a year by 2028-29. GST remains the largest source of income for Tasmania, representing 40 per cent of government revenue in 2025-26. Tasmania currently gets a 3.84 per cent share of Australia's GST pie. But that is shrinking slightly over the next four years to 3.62 per cent, partly due to a lower population growth forecast. However, in dollar terms, the amount of money Tasmania receives will continue to grow, with the general GST pool expected to rise. The state will still receive the no-worse-off guarantee payments of $384.4 million. That is not due to expire until 2029-30. Around a third of the revenue comes from the government's own sources, like taxes and dividends from government-owned businesses. The government has kept its promise not to introduce any new taxes. As to where it is going, once again health sucks up the largest amount of money, representing 34 per cent of expenditure. Education represents about a quarter. There is $3.5 billion in infrastructure spending budgeted over 2025-26 and the forward estimates. About $1.6 billion of that is for roads and bridges, but the state generally underspends on this figure. And, yes, there is money in there for the Macquarie Point stadium. In his speech, Mr Barnett makes it clear the "divestment of some government businesses and surplus crown land" will be used to prop up the budget. The government does not yet know which state-owned companies will be sold; however, it has ruled a number out based on two independent reports. Independent economist Saul Eslake's report into the possibility of selling some publicly owned companies rules out a number of government business enterprises (GBEs). The government has taken advice from Mr Eslake's report, ruling out the sale of: The government has reversed its previous decision to privatise parts of the Public Trustee. Meanwhile, Deloitte's examination of a mega merger between TasRail, TasPorts and TT-Line found merging either two or three of the entities would be "unfeasible" and present complexities around "misaligned objectives and minimal operational synergies". As a result, Mr Barnett has not only ruled out the merger, but also the sale of Spirit of Tasmania ferry operator, TT-Line. The government maintains it will not sell Hydro Tasmania. Mr Barnett said the sale of the following state-owned companies "will continue to be thoroughly assessed": Mr Eslake will hand the second part of his report to the government by the end of June. In it he assesses whether each GBE or state-owned company could be sold. Deloitte also suggested that the government explore the potential sale of Devonport Airport and the Bass Island Line shipping service. The budget and Mr Barnett's speech are peppered with words like "right shape", "right size", "right place" and "right tool" — many of them in reference to the public service. They flag potentially major changes and losing about 2,500 jobs by 2032-33. But the government has not outlined how it will achieve them. The Efficiency and Productivity Unit (EPU) which will help government agencies find areas for "improvement" either through programs, staff cuts and digitalisation. Meanwhile, the productivity and efficiency measure — that replaces the efficiency dividend in 2027-28 — is still aiming to save $150 million. Rather than each department having to find a set amount of savings, it will look at the public service as a whole, meaning more efficiencies might be found in some departments than others. Given it doesn't know what savings can be found yet, the government is hoping to save even more than $150 million. The Department of Treasury and Finance has also been allocated $3.3 million to help agencies identify savings strategies.
The Advertiser
4 days ago
- Business
- The Advertiser
State budget to tackle debt, deficit, AFL dream
Asset sales could be on the cards as a Liberal state government tries to reel in ballooning debt and deficit as well as fund its AFL dream. Tasmania's Treasurer Guy Barnett will hand down his maiden budget on Thursday, six months after taking over when his predecessor resigned over a ferry delivery saga. Updated estimates for 2024/25, released in February, showed deficit for the financial year would rise from $793 million to $1.2 billion. It also predicted net debt to reach $9.6 billion by 2027/28, up from the previously slated $8.6 billion. Mr Barnett recently refused to rule out the sale of state-owned companies, after the government commissioned a report to investigate potential privatisations. The budget would contain a "very clear" path to surplus, Mr Barnett said, despite the fact projected surpluses had been pushed back in recent years. The estimated price tag for a new Hobart stadium, a condition of the Tasmania Devils entering the AFL, has risen from $755 million to $945 million. The government is relying on borrowings to make up the difference, after pledging to "cap" its contribution to the project at $375 million. A larger spend is also needed to build the team's high performance centre, which has blown out from $70 million to $115 million. Costs have risen for a new port to berth delayed Spirit of Tasmania vessels in Devonport, with the latest figure up $188 million to $493 million. Former treasurer Michael Ferguson, who was the minister responsible for the project, dropped his portfolios because of delays to the ships' delivery. The government has been spruiking health and education funding, and on Wednesday announced $296 million to upgrade 23 schools over four years. There would also be $9.9 billion for education over the forward estimates in the budget. Health funding will make up one third of the state's operating budget, a figure of $14.6 billion over four years - a boost of $1.6 billion from last budget's figures. Asset sales could be on the cards as a Liberal state government tries to reel in ballooning debt and deficit as well as fund its AFL dream. Tasmania's Treasurer Guy Barnett will hand down his maiden budget on Thursday, six months after taking over when his predecessor resigned over a ferry delivery saga. Updated estimates for 2024/25, released in February, showed deficit for the financial year would rise from $793 million to $1.2 billion. It also predicted net debt to reach $9.6 billion by 2027/28, up from the previously slated $8.6 billion. Mr Barnett recently refused to rule out the sale of state-owned companies, after the government commissioned a report to investigate potential privatisations. The budget would contain a "very clear" path to surplus, Mr Barnett said, despite the fact projected surpluses had been pushed back in recent years. The estimated price tag for a new Hobart stadium, a condition of the Tasmania Devils entering the AFL, has risen from $755 million to $945 million. The government is relying on borrowings to make up the difference, after pledging to "cap" its contribution to the project at $375 million. A larger spend is also needed to build the team's high performance centre, which has blown out from $70 million to $115 million. Costs have risen for a new port to berth delayed Spirit of Tasmania vessels in Devonport, with the latest figure up $188 million to $493 million. Former treasurer Michael Ferguson, who was the minister responsible for the project, dropped his portfolios because of delays to the ships' delivery. The government has been spruiking health and education funding, and on Wednesday announced $296 million to upgrade 23 schools over four years. There would also be $9.9 billion for education over the forward estimates in the budget. Health funding will make up one third of the state's operating budget, a figure of $14.6 billion over four years - a boost of $1.6 billion from last budget's figures. Asset sales could be on the cards as a Liberal state government tries to reel in ballooning debt and deficit as well as fund its AFL dream. Tasmania's Treasurer Guy Barnett will hand down his maiden budget on Thursday, six months after taking over when his predecessor resigned over a ferry delivery saga. Updated estimates for 2024/25, released in February, showed deficit for the financial year would rise from $793 million to $1.2 billion. It also predicted net debt to reach $9.6 billion by 2027/28, up from the previously slated $8.6 billion. Mr Barnett recently refused to rule out the sale of state-owned companies, after the government commissioned a report to investigate potential privatisations. The budget would contain a "very clear" path to surplus, Mr Barnett said, despite the fact projected surpluses had been pushed back in recent years. The estimated price tag for a new Hobart stadium, a condition of the Tasmania Devils entering the AFL, has risen from $755 million to $945 million. The government is relying on borrowings to make up the difference, after pledging to "cap" its contribution to the project at $375 million. A larger spend is also needed to build the team's high performance centre, which has blown out from $70 million to $115 million. Costs have risen for a new port to berth delayed Spirit of Tasmania vessels in Devonport, with the latest figure up $188 million to $493 million. Former treasurer Michael Ferguson, who was the minister responsible for the project, dropped his portfolios because of delays to the ships' delivery. The government has been spruiking health and education funding, and on Wednesday announced $296 million to upgrade 23 schools over four years. There would also be $9.9 billion for education over the forward estimates in the budget. Health funding will make up one third of the state's operating budget, a figure of $14.6 billion over four years - a boost of $1.6 billion from last budget's figures. Asset sales could be on the cards as a Liberal state government tries to reel in ballooning debt and deficit as well as fund its AFL dream. Tasmania's Treasurer Guy Barnett will hand down his maiden budget on Thursday, six months after taking over when his predecessor resigned over a ferry delivery saga. Updated estimates for 2024/25, released in February, showed deficit for the financial year would rise from $793 million to $1.2 billion. It also predicted net debt to reach $9.6 billion by 2027/28, up from the previously slated $8.6 billion. Mr Barnett recently refused to rule out the sale of state-owned companies, after the government commissioned a report to investigate potential privatisations. The budget would contain a "very clear" path to surplus, Mr Barnett said, despite the fact projected surpluses had been pushed back in recent years. The estimated price tag for a new Hobart stadium, a condition of the Tasmania Devils entering the AFL, has risen from $755 million to $945 million. The government is relying on borrowings to make up the difference, after pledging to "cap" its contribution to the project at $375 million. A larger spend is also needed to build the team's high performance centre, which has blown out from $70 million to $115 million. Costs have risen for a new port to berth delayed Spirit of Tasmania vessels in Devonport, with the latest figure up $188 million to $493 million. Former treasurer Michael Ferguson, who was the minister responsible for the project, dropped his portfolios because of delays to the ships' delivery. The government has been spruiking health and education funding, and on Wednesday announced $296 million to upgrade 23 schools over four years. There would also be $9.9 billion for education over the forward estimates in the budget. Health funding will make up one third of the state's operating budget, a figure of $14.6 billion over four years - a boost of $1.6 billion from last budget's figures.
Perth Now
4 days ago
- Business
- Perth Now
State budget to tackle debt, deficit, AFL dream
Asset sales could be on the cards as a Liberal state government tries to reel in ballooning debt and deficit as well as fund its AFL dream. Tasmania's Treasurer Guy Barnett will hand down his maiden budget on Thursday, six months after taking over when his predecessor resigned over a ferry delivery saga. Updated estimates for 2024/25, released in February, showed deficit for the financial year would rise from $793 million to $1.2 billion. It also predicted net debt to reach $9.6 billion by 2027/28, up from the previously slated $8.6 billion. Mr Barnett recently refused to rule out the sale of state-owned companies, after the government commissioned a report to investigate potential privatisations. The budget would contain a "very clear" path to surplus, Mr Barnett said, despite the fact projected surpluses had been pushed back in recent years. The estimated price tag for a new Hobart stadium, a condition of the Tasmania Devils entering the AFL, has risen from $755 million to $945 million. The government is relying on borrowings to make up the difference, after pledging to "cap" its contribution to the project at $375 million. A larger spend is also needed to build the team's high performance centre, which has blown out from $70 million to $115 million. Costs have risen for a new port to berth delayed Spirit of Tasmania vessels in Devonport, with the latest figure up $188 million to $493 million. Former treasurer Michael Ferguson, who was the minister responsible for the project, dropped his portfolios because of delays to the ships' delivery. The government has been spruiking health and education funding, and on Wednesday announced $296 million to upgrade 23 schools over four years. There would also be $9.9 billion for education over the forward estimates in the budget. Health funding will make up one third of the state's operating budget, a figure of $14.6 billion over four years - a boost of $1.6 billion from last budget's figures.
