Tasmania could be facing up to $13 billion in debt if “explicit policy choices” aren't made to rectify the current state budget.
These are the findings of a new economic outlook into a draft budget for the state that was put forward by Premier Jeremy Rockliff, but ultimately rejected and led to a vote of no confidence and the subsequent snap election.
The vote of no confidence earlier this month led to a snap election called by the state governor. This will see Tasmanians head to the polls for the fourth time in just four years.
Now the Treasury Department's Pre-Election Financial Outlook, released earlier this week, has found that the forecast debt for the state could be $3 billion worse than Rockliff's draft budget predicted, for a total of $13 billion, and called for “expenditure restraint…including through election periods".
"Expenses, significantly driven by health demand and costs, are growing at a faster rate than the state's current sources of revenue,” say the report's key findings.
“This rate of growth in debt is not sustainable, and the size of the problem will only increase if not addressed. Immediate and sustained action is needed.”
