State Treasurer Jack Snelling has blamed a lower than expected GST revenue on the state's financial situation, saying that  a net operating deficit was now forecast for 2011-12 but restrained spending would see the state return a net operating surplus in 2012-13 that would continue over the remainder of the forward estimates.

 

Delivering the South Australian state budge, Mr Snelling said that total taxation revenue together with GST and royalties revenue from 2010-11 to 2011-12 will be almost $650 million lower than estimates made for the same period in the 2008-09 State Budget.

South Australia’s financial position is;

  • 2010-11 – Estimated net operating deficit of $427 million;
  • 2011-12 – Budgeted net operating deficit of $263 million;
  • 2012-13 – Budgeted net operating surplus of $114 million;
  • 2013-14 – Budgeted net operating surplus of $80 million;
  • 2014-15 – Budgeted net operating surplus of $655 million.

 

Mr Snelling said despite revenue reductions and modest spending, the Budget had a strong focus on supporting health, disabilities and some of our most vulnerable families and communities.

The main points of the 2011-12 State Budget include:

  • Extra spending of $133.3 million over the next four years so more South Australians can get the health care they need and deserve;
  • Extra spending of $69.1 million over the next four years to boost the state’s child protection system and meet the growing needs of our children requiring state care;
  • Extra spending of $37.5 million over the next four years to meet the needs of South Australians living with a disability and their carers. This support will assist disability clients requiring accommodation support, community access and respite service for carers;
  • Extra spending of $19.3 million over the next four years so 23,000 more women by 2014-15 can be screened for breast cancer, potentially detecting 340 life threatening cancers; and
  • Extra spending of $10.8 million over the next four years to help meet demand now and into the future for much-needed equipment for people with a disability.

Mr Snelling also said the Government has reversed a 2010-11 Budget Decision to remove recreation leave loading for eligible public sector employees.

 

Mr Snelling defended the Government's choice to make 400 full-time equivalent public sector employees  redundant over 2012-13 and 2013-14 would deliver savings of $31 million a year (indexed) by 2014.

 

“The reductions won’t affect frontline services and will be shared on a pro-rata basis across departments,” he said. This reduction is separate to those announced in the 2010-11 State Budget.