October 27, 2022
Michael Ferguson, Treasurer
Today, I am pleased to release the Treasurer’s Annual Financial Report for 2021-2022, which demonstrates the government’s continued prudent and responsible fiscal management.
The end result for the 2021-22 fiscal year shows a significant improvement in the state budget position and a fantastic year for infrastructure delivery.
Compared to the forecast prepared for the 2021-22 budget, the actual net operating balance for 2021-22 improved by $458 million, reducing the budget deficit from approximately $689.8 million to $231.8 million. of dollars.
This is a massive reduction of 66.4% of the deficit initially forecast in the budget. Although our COVID-related expenses were higher than expected during the year as we responded to the emergence of the Omicron variant, our rebounding economy, improving our GST revenue, strong revenue of the state and a booming mining sector have all contributed to a significant improvement in results. .
The TAFR provides the final audited result for infrastructure investments in 2021-2022 and shows that the last fiscal year was the strongest year of delivery under this government. As we entered the pandemic, we made a conscious decision to invest even more in our infrastructure program to boost employment and support our construction and public works sectors, and this decision has clearly paid off. in the whole economy.
With the help of our civil and construction industry partners, we achieved a total general government investment in infrastructure of $819.6 million against a budget estimate of $828.5 million. dollars.
As Treasurer and Minister of Infrastructure and Transport, I am delighted with this result which represents an impressive 99% success rate for infrastructure delivery.
Thanks to careful management of our finances, our net debt position has also improved significantly compared to budget. As of June 30, GFS’s net debt was $649.6 million, less than half of the $1.4 billion projected when the 2021-22 budget was presented.
The improvement in performance is not limited to the general government sector. For the whole state sector (including public enterprises and statutory authorities), the projected deficit improved from $832.5 million to $192 million. Similarly, GFS net debt was 64.8% lower than forecast in the 2021-22 budget, falling from $2 billion to $706.7 million for the entire government sector.
These results are no accident – they are the result of disciplined budget management and dedication to delivering on our plan. As Labor continues to demand more and more spending without ever producing an alternative budget, we will continue to implement our plan, allowing Tasmania to continue to prosper for future generations.
The Treasurer’s Annual Financial Report is available here: https://www.treasury.tas.gov.au/budget-and-financial-management/financial-reports/treasurers-annual-financial-reports
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