The Tasmanian budget is expected to include a pushed-back surplus and details about funds for a contentious $715 million new stadium.
State Liberal Treasurer Michael Ferguson will on Thursday hand down the 2023/24 budget, almost two weeks after the government was plunged into minority when two MPs quit the party.
He said the government was battling economic headwinds, including high inflation and a write-down of some $940m in GST revenue over four years.
“(Despite) the GST reductions in revenue to our state that were outlined in the recent federal budget …. this budget does chart a path to surplus,” he told reporters earlier this week.
Last May’s budget predicted a return to a slender $19m surplus in 2023/24.
Mr Ferguson said the budget would include outlays towards the planned stadium at Macquarie Point in Hobart as well as the state’s AFL team.
The state has pledged $375m to the stadium, as well as $12m per year over 12 years towards a team and $60m for a high-performance centre.
Mr Ferguson said the budget would also include $347m over four years to help people on lower incomes pay water, sewerage, power and local government bills.
He said health and education would account for 60 per cent of the budget spend, roughly $8 billion.
According to last year’s budget, the state is set to carry almost $5.2b of net debt by 2025/26.
It is Mr Ferguson’s second budget as treasurer for the Liberals who have been in power since 2014.
The state government on Wednesday announced it would spend $1.5m on trialling an affordable rental initiative.
Under the program, the government will rent properties on the private market and provide them to eligible low-income Tasmanians at a reduced rate.
The government has just 11 of 25 lower-house seats after John Tucker and Lara Alexander quit the party and became independents.
They cited concerns with transparency surrounding the stadium and AFL deal. Both have promised to support the budget and vote it through parliament.