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2016-17 Budget: Getting the Budget Back on Track

May 26, 2016

Peter Gutwein, Treasurer

After two years of a Hodgman Liberal Government, the Budget - and the State - is now back on track.

We said we would balance the books and we have done just that.  The 2016-17 Budget will deliver a surplus of over $77 million, the first surplus in seven years.

Under the Hodgman Liberal Government, the economy is growing at the fastest rate in six years, the unemployment rate is down nearly one percentage point and nearly all the major economic indicators show that Tasmania is heading in the right direction.

And while there is more we can do, we have to live within our means, that’s why getting the budget back on track is so important.

This year’s Budget has been framed in difficult circumstances, including the loss of more than half a billion in GST payments.  Despite this, as a result of our disciplined approach, this year’s Budget will still deliver a surplus and still reinvest in health, education and protecting the vulnerable.  We are also continuing with our plan to grow the economy and create jobs.

Importantly, a surplus will be achieved without any new taxes or new savings measures, but rather through spending discipline.  We have restricted spending growth to around the rate of inflation, compared to the 4.8 per cent increases year-on-year during the last eight years of Labor and the Greens.

Jobs remain the Government’s number one priority and this year’s Budget includes a package of measures totalling $425 million to support industry and jobs growth.

We will continue to invest in health and education and a focus of the Budget will be supporting vulnerable Tasmanians through investing in affordable housing and also measures to tackle family violence.

Of course, this is only a snapshot of how the Government is investing the around $5 billion per year of your money we are entrusted with and full details are available at www.premier.tas.gov.au.

There’s still a long way to go, but our state is now firmly back on track.