The TCCI is the voice of business in Tasmania and is concerned by what has been revealed in today’s State budget.

 

TCCI CEO, Michael Bailey, said the level of debt and deficit outlined by the Government in the budget isn’t sustainable.

 

“There is a massive looming budget blackhole and we can’t let the State’s finances get sucked into it,” Mr Bailey said.

 

“It’s clear that the Government needs to rein in spending in a sensible and focussed way.  The State simply cannot go on living beyond its means and the Government is going to have to show some courage to get the budget back under control.

 

“For many years there has been a problem in managing costs within Government, it is not so much a revenue problem as it is a problem with managing expenses.

 

“In recent years, the final budget result each financial year has proven to be much worse than the budget estimate.  At the very least, the Tasmanian Government needs to at least stick to its budget and ensure it shows the fiscal discipline to make sure the final result is not worse than the already significant deficit forecast for 2025-26.

 

“Every Tasmanian should now be very concerned at the level of deficit and forecast public debt.  The Government is maxxing out the credit card and it will be the next generation having to pay the bill; is this the legacy that we want to leave?

 

“We do welcome the Government’s focus on supporting investments that will boost the economy and help improve budget sustainability.  In particular, we welcome the Government’s continued support for, and investment in, Marinus and the North West Transmission Development, helping to unlock billions of dollars of investment, create jobs and drive economic growth, which will ultimately help with budget repair.”