The South Australian government has handed down its first budget since its resounding election win in March, setting out its spending priorities for the years ahead. According to the report, there were no major surprises in the document, with the state treasurer instead focusing on delivering the commitments the government took to voters.
At the center of the budget is the delivery of about 2.2 billion dollars worth of election promises. These include making public education free for primary and high school students, a headline commitment, as well as moves to fast-track housing supply at a time of significant pressure on the state's property market.
Health remains a major area of spending, continuing a pattern that has defined this Labor government. The budget sets aside 1.7 billion dollars to be spent across the next five years in an effort to address the rising demand on the public health system, which has been under sustained strain.
That spending comes at a cost to the state's balance sheet, with debt expected to climb over the period. State debt is currently sitting at about 34.7 billion dollars for this financial year, and is forecast to keep rising over the next four to five years as the government funds its commitments.
By 2029 and 2030, according to the figures presented, state debt is expected to reach around 53.7 billion dollars. The sharp increase underlines the financial challenge facing the government as it tries to balance election promises and growing service demands against a deteriorating debt position.
To help manage costs, the budget also includes cuts to the public sector. About 1,000 jobs are expected to be cut from the public service, a measure that the government anticipates will save around 120 million dollars each year once it takes effect across the workforce.
Alongside those cuts, the budget earmarks 319 million dollars that has been set aside for a support package. Taken together, the measures paint a picture of a government seeking to honour its election agenda on schools, health and housing, while leaning on job reductions and rising debt to pay for it.