The Revised Estimates Report released today shows that the budget is on track. On track to deliver what we said we would in the 2014-15 financial year and we remain on track to deliver a surplus within six years.
The Government is on track to deliver a net operating balance that is just $14 million off the balance forecast in the budget, and over the forward estimates, an improvement of $23.3 million.
In the context of a $5 billion budget, this year’s variance is less than half a per cent and the smallest Revised Estimates Report variance in nearly ten years.
Last year’s variance under Labor and the Greens, for example, saw the deficit blow out by $109 million in just six months.
Since the budget, the Government has made just two additional spending decisions totalling $3.1 million (for the West Coast assistance package and to host the Chinese President’s visit and hold the TasInvest summit). In contrast, last year under Labor and the Greens there were 33 additional spending decisions costing $49.8 million.
What this shows is that when you have a Government prepared to exercise spending discipline, the budget can be brought under control.
The Revised Estimates Report also shows that while there is still a long way to go, Tasmania’s economy is improving. Treasury has today revised the official economic forecasts to take into account the fact that under this Government 7,000 new jobs have been created and the fact that economic growth is strengthening.
The Government is also on track to deliver the savings outlined in the budget. We said that the nearly 25,000 public sector Full Time Equivalents (FTEs) would be reduced by 821 FTEs this financial year. As at the end of December, the public sector had already been reduced in size by 509 FTEs (DoE – 180 FTEs, DHHS – 168 FTEs, DSG – 85 FTEs, other agencies – 76 FTEs).
Around 1,500 public servants put their hands up to voluntarily leave the public service. What this means is that we have been able to be very strategic in the way in which we have reduced the size of the public sector and wherever possible, we have done everything we can to protect frontline services while making the necessary savings.
There have been no forced redundancies and no one has been sacked. The Government has reduced the size of the public service through voluntary redundancies, strict vacancy control and strategic position management and we are reducing the cost of the public service through the Workforce Renewal Incentive Program.
These savings are vital so that we can deliver affordable public services. Our long-term Plan is all about ensuring future generations can continue to access the public services they deserve and that the Government can afford.
While there is clearly a long way to go, this just shows what can be achieved by a disciplined Government with a long-term Plan, and the right team to deliver it.
Peter Gutwein, Treasurer
