Health, housing and hip-pocket focus of state budget
Health, housing and cost-of-living relief will feature heavily in the state budget being handed down today, which will confirm a plunge into the red for South Australia’s finances.
Treasurer Stephen Mullighan delivers the 2022 state budget. He will deliver the Malinauskas Government's second budget today. Photo: Tony Lewis/InDaily
Treasurer Stephen Mullighan will deliver the Labor government’s second economic blueprint on Thursday after conceding its plans to return the books to surplus will be delayed by a year.
The government will unveil a $249 million deficit for 2022/23, in sharp contrast to the $233m surplus forecast in the budget last year.
The deterioration has been blamed on increased spending on health and child protection, about $90m in lower GST returns and the cost of relief and assistance measures following summer’s flooding along the Murray.
Mullighan said the government still aimed to deliver budget surpluses going forward, including in 2023/24, but its plans would be put on hold for 12 months.
“We were trying to transition the budget from an $830 million deficit back into a surplus under the first year of this government but with the additional pressures on the budget in health and from floods and a bit less GST than we were expecting, we’ve had to delay those plans by a year,” the treasurer said.
“We’ve taken the responsible decision to continue to invest in supporting the community where necessary.”
Mullighan also pledged to honour Labor’s promise of no new or increased taxes with extra health spending, funding to ease the housing crisis and a package of measures to reduce cost-of-living pressures, especially energy prices, among the budget priorities.
But the Liberal opposition called for more action to ease hip-pocket pain.
“Broad cost of living relief for all South Australians remains at the top of our wish list for this year’s budget,” Opposition Leader David Speirs said.
“While other states like Queensland, Victoria and Western Australia have implemented schemes to support their households, Labor’s left South Australian families in the lurch.”
Business SA also called for relief for local companies and traders in need of practical and innovative support.
“While some businesses have done well off the back of major events this year, many are facing significant challenges in complicated economic circumstances,” chief executive Andrew Kay said.
“Escalating inflation, soaring interest rates, unmanageable energy costs, labour shortages and wage increases are all factors contributing to an unfavourable business environment.”
-AAP
