We’re in deep trouble. With no change, net debt for the general government sector will grow from $4.2 billion in 2024-25 to $13 billion in 2027-28.
Our annual interest bill will at least rise from $230.9 million to $697.9 million over the same period.
Pre-Election Financial Outlook Report says about the debt crisis:
- “The State Budget has a structural problem … (which) will not be resolved by future economic growth.
- “A combination of revenue and expenditure measures will be required.”
- “Immediate and sustained action is needed.”
The next government needs to adopt my 4 Steps to Budget Repair –
1. Smarter Infrastructure Spending
• Get Treasury advice on what we actually need and can afford
• Rank projects by bang-for-buck — fund the best ones first
• Independent Auditor to check compliance each year
2. Raise Fair Revenue
• Royalties on mining and salmon: pay for the resources they profit from
• Luxury car & land tax reform — protect people who need it and fund the future
3. Cut Wasteful Industry Handouts
• Clear rules for subsidies: What do taxpayers get in return?
• Annual public reports on who got what — and whether it worked
4. End Pork-Barreling
• No more backroom grants or photo-op funding
• If it’s public money, it must go through a fair, open process
Success! My Budget accountability motion passes
Time for a Parliamentary Budget Office
In a Budget crisis we now own shares in a tanking tungsten mine but that’s not the worst of it