Treasury report into state finances

Treasury Building

A key report examining the state's finances has been released by Treasury.

What to take out of the Tasmanian Government's Fiscal Sustainability Report will likely depend on which side of the political fence you sit on.

Essentially, the figures show fiscal outcomes are manageable in the short to medium term under all projected scenarios, but could very well become unaffordable down the track.

As expected, health will be the biggest strain on the Tasmanian budget, and how it's managed will be the single most significant driver of outcomes for the state.

Treasurer Peter Gutwein says the report confirms the Government's plan is working,

"The Report reinforces the need for the Government to remain fiscally responsible and deliver on its announced efficiency dividend," he said.

"The Hodgman majority Liberal Government is living within its means and spending less than we earn."

But Labor is pointing out that net debt is expected to blow out to $4.5 billion by 2033 under current estimates.

“This Report is an extraordinary intervention by Treasury that shows once and for all how badly the Liberals under Will Hodgman have trashed Tasmania’s Budget. They simply cannot manage money," Shadow Treasurer David O'Byrne said.

“Perhaps the most concerning thing about this report is that even the best case scenario is based on dramatically underfunding health – not just now but for more than a decade to come.*

“Put simply, that means that on the Government’s current path, by 2033 the health system is being forecast to receive half the funding it actually needs."

It's thought that demographic changes in Tasmania won't be a major influence on fiscal outcomes over the projected period.

The report also states that corrective policy actions are easier and more effective if implemented early.