The South Australian Premier proudly announced Thursday's state budget contains no surprises or new taxes, a declaration that underwhelmed many observers. Peter Malinauskas shared the stage with Treasurer Tom Koutsantonis, who last delivered the annual document in 2017 before returning to the role late last year.
Budget Highlights and Concerns
A vast majority of small goodies in tight economic times had already been promised during the election campaign and are now being delivered after Labor's resounding victory less than three months ago. Of most concern is not Thursday's finances, but rather the projected state debt of $53.6 billion by the end of the decade. This dark shadow eclipses any hard-sell good news about surpluses that are higher than forecast. The estimated result was $189 million in the black, but that will now climb to $223 million in 2026-27. Some say it will take more than a century to pay off the growing debt due to the North-South Corridor project, including tunnels, and the new Women's and Children's Hospital.
Cost-of-Living Relief
Families with school-aged children were given much-needed cost-of-living relief. Fee-free public schooling will begin next year, costing taxpayers $174 million over four years but saving the average family $8,000 per child throughout their schooling.
A 'No Surprises' Budget
So does a 'no surprises' budget equate to it being dull, colourless, and boring? The state government is happy to present the document in this way, which feeds into the community's low expectations. We've been softened up for austerity measures ever since the election campaign started. With next-to-no loose change left in the Treasury cupboard, there was little else to offer other than being told the future is all that matters.
Innovation and Private Investment
The Premier is insistent that South Australia needs to be more of a clever state with innovation, some risk-taking, and plenty of entrepreneurship. That's throwing down the gauntlet for more private investment, helped along by a new productivity fund of $50 million over four years for research and development. In running the risk of eyes glazing over with this announcement, the Premier dropped his so-called 'bombshell' with a prediction that he wouldn't win one extra vote with the initiative.
Malinauskas: Man of the People
Malinauskas thrives on being a man of the people. He loves to be seen having a beer with the blokes, rubbing shoulders with sporting identities, and being fawned over by star-struck fans. It's served him well as state leader and proved his reputation on a national stage. After Thursday's sales pitch, which ran almost as long as the Treasurer's presentation during the media lock-up, he received an unscheduled question during the mandatory handshake and photo opportunity with Koutsantonis. Veteran Adelaide journalist and broadcaster Matt Abraham loudly interjected: 'Premier, it sounds like your pitch for Canberra to me.' After an awkward second or two, the Premier said nothing but hastily left the stage. Perhaps there's an ounce of truth to it.
Mike Smithson is a political analyst and weekend newsreader for 7NEWS Adelaide.
