When Treasurer Michael Ferguson delivers the state budget on Thursday, there will be no way for him to spin out of what a disaster it really is. This will be the worst and most unsustainable budget in Tasmanian history.

The Liberals have delivered the biggest deficit ever seen in Tasmanian history - nearly five times worse than the deficit carried at the height of COVID.

After inheriting zero net debt from Labor in 2014, the Liberals have blown the budget so badly Tasmania is set to have the worst finances in the nation within three years, including record debt of $6.1 billion, along with $1.7 billion worth of unfunded election promises yet to be accounted for in the budget. 

Independent economist Saul Eslake has made it clear that the budget mess is “entirely attributable” to state government policy. He couldn’t be clearer that the Liberals’ mismanagement over the last ten years is the reason Tasmania in this terrible position.

The budget will include vacancy control measures and at least $300 million worth of cuts from essential services as part of their ‘efficiency dividend’ that will impact Tasmanians trying to receive healthcare, education, housing, or help from the police.

Tasmanians will be wondering why we don’t have more to show for the Government’s record deficits and debt. Our health system is in crisis, educational outcomes are lagging the nation, infrastructure is crumbling around us and key economic driver projects like the Spirits have been completely bungled.

Michael Ferguson has already lost the Infrastructure portfolio because he couldn’t manage the new Spirits project. He must be extremely nervous about the reception his budget disaster is going to receive after the Liberals have shown they can’t be trusted to manage the state’s finances.  

Josh Willie MP
Shadow Treasurer