South Australian Treasurer Tom Koutsantonis has defended the state’s growing debt, arguing increased borrowing is necessary to fund major infrastructure projects.
New figures from the Australian Bureau of Statistics show government borrowings have nearly tripled over the past decade, rising from $12.37 billion in 2015/16 to $31.47 billion in 2024/25, pushing total state liabilities to $48.09 billion.
The state has also recorded a cash deficit of -$2.71 billion, with debt projected to reach $48.7 billion by mid-2029.
Koutsantonis said the borrowing is tied to major projects including the $15.4 billion Torrens to Darlington South Road upgrade and the new $3.2 billion Women’s and Children’s Hospital.
“Budget surpluses and a strong balance sheet have enabled the state government to embark upon a record infrastructure program,” he said.
“The government has been upfront about the debt profile increasing to enable delivery of two game-changing pieces of community infrastructure in the near term.”
He also noted the government had honoured its commitment not to raise taxes, pointing to measures such as abolishing stamp duty for first-home buyers purchasing new homes, and highlighted strong state credit ratings from S&P Global Ratings and Moody’s.
The figures have drawn criticism from opposition leader Ashton Hurn, who said Labor’s approach had led to “skyrocketing taxes, rising deficits, growing borrowing and ballooning government spending,” adding there was a gap between its “she’ll be right” rhetoric and the state’s financial reality.
Despite the rise in overall liabilities, from $32.27 billion in 2015/16 to $48.09 billion in 2024/25, data shows superannuation liabilities have fallen significantly over the same period, dropping from $14.03 billion to $6.6 billion.
Source: The Advertiser.
