The Tasmanian Premier, Lara Giddings, has released the Preliminary Outcomes Report 2010-11 which shows that the Net Operating Balance for the state is expected to be a deficit of $29 million.

 

Ms Giddings said the  improvement of $36 million on the original 2010-11 Budget estimate of a deficit of $65 million was primarily a result of additional Australian Government infrastructure funding - in particular, $270 million in funding received from the Australian Government for the Royal Hobart Hospital Redevelopment.

 

However Ms Giddings said that the result does not represent an underlying improvement in the State’s Budget position.

 

“The report shows the continued effect of the GFC on Tasmania’s GST receipts, which are estimated to be $108 million below the original 2010-11 Budget estimate, while State tax revenue is estimated to be $26 million below the original Budget estimate.

 

“The preliminary outcome for the 2009-10 Fiscal Balance is a deficit of $461 million, an improvement of $69 million from the original Budget estimate.”

 

Ms Giddings said the State Government needed to remain vigilant to deliver the savings outlined in the 2011-12 State Budget in order to avoid going into Net Debt.

 

“While the 2010-11 Preliminary Outcomes are close to our expectations, we still face a massive task to reduce spending across Government in order to make the Budget sustainable in the long term.

 

“We are still facing a $1.7 billion shortfall in Commonwealth and State own revenue and continued uncertainty in world financial markets means we must be prepared for more volatility.

 

“I am encouraged that we have already been able to identify savings across government departments simply by increasing efficiencies, eliminating waste and duplication and cutting down on cars and mobile phone use.

 

“Not all the decisions we make will be easy but they are absolutely necessary to ensure the State’s Budget is returned to a sustainable position.”

 

Ms Giddings said that the final budget outcome for 2010-11 would be published in the Treasurer’s Annual Financial Report by 31 October 2011.

 

A copy of the Preliminary Outcomes Report can be found at www.treasury.tas.gov.au.