Peter Gutwein,Premier
The 2021-22 Revised Estimates Report has been released today confirming Tasmania’s economic and financial position remains strong as we continue to manage the impact of COVID-19.
Reflecting this strength in the economy, the estimate for state final demand growth has been revised upwards from 3¾ per cent to 5¼ per cent in 2021-22, and forecasts continue economic and employment growth over the next four years.
As a result of better economic and financial outcomes, the Net Operating Balance has improved by over $487 million over the Budget and Forward Estimates period.
In 2021-22 alone, the Net Operating Balance has improved by almost $85 million and the budget remains on track for a return to surplus next year.
The improved budget outcome is due to strong growth in revenue as a result of higher than expected activity across the economy.
Revenue in 2021-22 is now forecast to be $495 million greater than originally estimated due to increased GST receipts to the state, national partnership payments, and own-source revenue.
The Tasmanian Liberal Government continues to invest in next-generation infrastructure for Tasmanians, while actively supporting the building and construction sector and its thousands of jobs.
Infrastructure investment for the six months to 31 December 2021 is $321 million, more than $81 million greater than the same period last year.
Importantly, infrastructure investment has been revised upwards by $72.5 million to over $900 million this year.
As we continue to invest in infrastructure, GFS Net Debt is forecast to be $1,448 million consistent with the budget estimate and will remain the lowest level of net debt of any state or territory in both dollar terms and on a per capita basis.
There is no doubt our economy entered the pandemic in a position of strength, and we have worked hard to maintain this.
Tasmanians have responded by doing the right thing, getting vaccinated, and supporting local businesses allowing us to reopen as one of the safest places in the world.
Our economy is nation-leading, employment is at near-record levels, and our unemployment rate is the second-lowest in the country.
We will continue to support Tasmanians, our businesses, and our community to maintain this momentum as we continue through this transition phase and learn to live with COVID.
