South Australian Treasurer Tom Koutsantonis has revealed that state debt is projected to reach about $53.6 billion by mid-2030, making it the highest debt level in South Australia’s history.
Despite the figure, he argues the debt remains manageable because it is tied largely to long-term infrastructure investments rather than day-to-day spending.
At Thursday’s budget media lockup Koutsantonis said, “We are not going to become Victoria, where there’s no problem that money can’t fix. There’s going to be budget discipline.”
He argued that the “budget lives within its means,” with the debt driving “the delivery phase of the largest infrastructure program in our history.”
Koutsantonis highlighted projected operating surpluses and ruled out new taxes. He says the government is focused on maintaining financial discipline while still funding major commitments in health, housing, transport and education.
A major driver of the rising debt is the state’s large infrastructure pipeline, particularly the $15 billion-plus South Road tunnels project and the new Women’s and Children’s Hospital. The Treasurer argues these projects are essential investments that will strengthen South Australia’s economy and productivity over the long term.
To offset financial pressures, Koutsantonis has introduced measures aimed at controlling government spending, including a partial freeze on public-sector hiring that is expected to save around $120 million annually. He says the goal is a leaner and more efficient public service without affecting frontline services.
While critics warn the debt burden and interest costs are becoming unsustainable, Koutsantonis maintains that South Australia is avoiding the higher-spending approach seen elsewhere and can continue to deliver surpluses while investing in growth.
His message is that borrowing for productive infrastructure today will support the state’s future prosperity, even as debt reaches record levels.
Source: The Advertiser
