What did Rann do with extra $600 million?
Friday, 16 December 2005
Final budget figures for the last financial year confirm that the Rann Government collected $600m more revenue than originally estimated, according to Shadow Treasurer Rob Lucas.
“The 2004-05 Final Budget Outcome released today confirms that the Rann Government is ‘awash’ with GST money and also from massive increases in property taxes and other state taxes and charges,” Mr Lucas said today.
“In fact, the Rann Government actually collected more than $2000 million extra in revenue in 2004-05 than for the last year of the Liberal Government in 2001-02.
“However, most of that extra revenue has been wasted because no one can see a $2000 million improvement in hospital waiting lists, school resources or road maintenance.
“The budget outcome confirms for the third year in a row the Rann Government underestimated the level of property tax collections. Sooner or later Mr Rann will have to concede his broken promises on property taxes are hurting thousands of South Australian workers and their families.”
For each of the last three years now the Rann Government has made significant errors in their estimates of total revenue being collected:
Original Revenue Estimate ($m) Actual Revenue Collected ($m) Error ($m)
2002-03 8818 9346 528
2003-04 9161 9955 794
2004-05 9997 10592 595
“The Rann Government is either deliberately underestimating revenue each year or there is a major problem within Treasury in terms of their capacity to estimate accurately total revenue for the year,” Mr Lucas said.
“Mr Foley’s usual humility in claiming credit for reducing the State’s debt levels is a little difficult to take seriously!
“The Auditor-General’s official figures show the former Liberal Government reduced Mr Rann and Mr Foley’s State Bank debt from $11.6b in 1993 to $3.3b in 2002.
Since then, the $3.3b debt has further reduced to $2.1b due to massive GST and property tax revenue flows.
“Mr Foley’s claim that debt is now only $144 million (not $2.1b) is misleading, as he excluded key agencies such as the South Australian Housing Trust, TransAdelaide, SA Water, Forestry SA etc!!
“The budget outcome confirms again that there is the capacity and need for further tax relief for long-suffering South Australian workers and their families.”