Overview
- Net debt is forecast to rise from about $5 billion in 2024–25 to roughly $10.4 billion by 2028–29, with a tiny $5.6 million net operating surplus projected in 2028–29 after several years of deficits.
- The budget adds only three new savings initiatives worth about $12 million a year at peak and tasks agencies with finding $150 million in annual savings from 2026–27.
- The government plans to reduce the public service by about 2,800 positions by 2032 and has budgeted wage growth at 2.5 percent as unions reject a 3 percent offer.
- Fiscal risks flagged include support for TT-Line after a $75 million equity injection and higher borrowing capacity, optimistic returns from GBEs, and a $1.13 billion Hobart stadium subject to a December parliamentary vote.
- Economists describe the outlook as dire and say a larger repair program — potentially including revenue measures — will be required beyond this holding budget.