23 May 2019

Peter Gutwein MP

2019-20 Budget: Continued discipline driving record investment for growth

The Hodgman Liberal Government’s proven Fiscal Strategy provides a strong and effective framework for the ongoing management of our State’s budget position that enables us to invest for growth.

This discipline allows us to make this budget all about maintaining the momentum, and investing for growth.

The Government will continue to achieve all our Fiscal Strategy Strategic Actions over the term of the 2019-20 State Budget and forward estimates period.

The 2019-20 State Budget achieves these Actions by;

• Keeping annual growth in General Government operating expenses lower than the long-term average growth in revenue:
  • Since 2014-15, the compound annual growth in expenses over the period to 2022-23 is 2.9 per cent, comfortably below the long-term average revenue growth rate of 4 per cent;
• Delivering record investment in infrastructure to respond to economic and population growth while maintaining existing assets;
• Ensuring Government Business Enterprises provide services at the lowest sustainable cost to Tasmanians while also providing an appropriate financial return to the Government;
• Continuing to provide a competitive state tax environment that is efficient, fair, simple, stable and sustainable;
• Managing General Government debt and defined benefit superannuation liabilities so servicing costs remain less than 6 per cent of General Government cash receipts; and
• Continuing to improve public sector efficiency, productivity and financial transparency.

The Hodgman Liberal Government has fixed the budget mess left to us by the former Labor-Green Government.

Tasmania has come a long way in the last five years, and the 2019-20 State Budget ensures we can maintain the momentum and invest for growth and manage any unexpected shocks along the way, like fires or floods.