The Hodgman Liberal Government is committed to strong, disciplined financial management so that we can continue to invest more into essential frontline services.
Today’s release of the Revised Estimates Report for 2018-19 provides an update on the Budget, Forward Estimates and economic forecasts.
The annual report confirms the Hodgman Liberal Government has once again balanced the budget which remains in surplus across the forward estimates while at the same time is responding to the needs of Tasmanians – by investing more into health and human services as well as maintaining our record $2.6 billion infrastructure program.
The report also shows the Tasmanian economy remains strong, and that Treasury are now expecting our economy to grow at a faster rate than forecast in the budget revising upwards the rate of growth of both Gross State Product and State Final Demand.
The Government remains committed to spending less than we earn, keeping the budget in surplus and achieving our fiscal strategy targets, all the while keeping our economy strong and investing in areas that matter to Tasmanians.
The RER confirms that the budget’s strong position has been used to respond to a range of challenges including unprecedented levels of demand in our hospitals and health systems.
While we will still remain in surplus this year and across the forward estimates, the RER shows the forecast surplus has reduced as we invest more into health, out-of-home-care and the justice system which is precisely why we budgeted for a surplus in the first place.
Despite increased investment into essential services, the strength of our finances has enabled the Government to make the deliberate decision to continue its record $2.6 billion infrastructure program. Indeed, the RER includes an additional $88 million of investment into economic and social infrastructure around the state to meet the infrastructure needs of our growing state.
Because of our commitment to investing in Tasmania’s future and due to our growing population and economy the RER forecasts a small increase in net debt from 2020-21 which will fund our investment into intergenerational assets like schools, roads, bridges and health infrastructure.