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Labor critical of SA debt hike

The South Australian opposition has lashed the state government for increasing state debt in this week's budget.

South Australian Opposition Leader Peter Malinauskas.
South Australian Opposition Leader Peter Malinauskas is critical of the rise in state debt. (AAP)

South Australian Opposition Leader Peter Malinauskas has lashed the state government over a decision to hike state debt in this year's budget.

In his budget reply speech on Thursday, Mr Malinauskas told parliament the budget also "lays waste" to the government's election promises to create jobs, lower costs and improve services.

"More jobs, lower costs and better services now appears to be a slogan that is just another promise delivered by just another politician," he said.

"It is a promise without a policy."

In the budget, the government outlined a plan to borrow heavily to help fund an ambitious infrastructure program including some major road projects.

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It will borrow almost $4 billion over the next five years as state debt grows from $6.2 billion this financial year to $9.5 billion in 2019/20 and then to $13.2 billion by 2022/23.

Treasurer Rob Lucas defended the decision as a calculated move given the current economic climate and record low interest rates.

"An assessment by the rating agencies which says that, in a $22 billion budget, this is a manageable level of debt is an important independent commentary," he said.

"We know that (a 1.66 per cent interest rate) won't continue forever so we'll lock in some long term debt and manage those sorts of issues over a long period of time."

But Mr Malinauskas said the move to raise debt was emblematic of a government without a long-term plan.

"There is no debt target, no repayment plan and no metrics at all pointing to a plan for a future debt discipline," he said.

"The only debt plan is a decision to leave uncosted debt bombs lying around outside of the forward estimates.

"That is, after the next election."

Mr Malinauskas also zeroed in on the allocation of $550 million to start construction of a new Women's and Children's Hospital in Adelaide.

He said the funding came despite the government being unable to say what the final cost will be.

"It is utterly reckless to commit future taxpayers to expenditure when you cannot even tell us how much it will be," he said.


2 min read

Published

Source: AAP



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