December 2020
After 16 years on the opposition benches, Rob Lucas
returned as Treasurer in 2018, with a plan to bring SA’s
budget back into black.
But two years on, after catastrophic bushfires and in
the midst of a world-disrupting pandemic, everything’s
changed.
Mr Lucas has delivered a budget he says is "drowning in
red ink".
According to the ABC, it’s not forecast to return to
surplus until the end of the 2023-24 financial year, and
the Treasurer admits that’s not a done deal.
He said if a COVID-19 vaccine isn’t available by the end
of next year the government will be in "a world of
pain".
But while the deficit indicates the government is
spending more money than it’s collecting in revenue in
any given year, another figure is also reaching record
levels — the state’s overall debt.
Debt was due to grow to $21.3 billion by 2022-23, but
this latest budget forecasts it to reach $33.17 billion
by 2023-24.
The Treasurer said the good news is low interest rates
are making debt cheap.
One of the most exciting revelations in the budget is
the government’s plan to improve the final piece of the
North-South Corridor, the section of South Road from the
Torrens River to Darlington.
It’ll build two tunnels, one starting one kilometre from
Darlington and ending just before the Glenelg tram line,
and another stretching from just south of Sir Donald
Bradman Drive, and ending before West Thebarton Road.
They’ll be connected by a series of lowered and surface
motorways.
The Government estimates that project will cost $8.9
billion, but it won’t act as an immediate stimulus.
Major construction won’t begin until late 2023, and the
project is scheduled for completion in 2030.
Another major development that’s a long way off is the
new Women’s and Children’s Hospital to be co-located
with the Royal Adelaide Hospital.
The Government allocated $685 million towards the
project over four years, and believes it will be
completed by 2025-26, but hasn’t finished the business
case and doesn’t know the final cost.
The Treasurer wants a ‘two-year, in-and-out’ stimulus
With big projects too far away, Mr Lucas says he wants
to "spend significantly in the next two years, in and
out, on projects which are either completed or
significantly completed". Projects include, the South
Eastern Freeway, and Main South Road. Also, improvements
to sport and recreation infrastructure including
Memorial Drive, Hindmarsh Stadium and schools
infrastructure improvements and grants for maintenance
works.
There’s also grants and other support measures for small
businesses, tradies and tourism operators.