An independent analysis of Treasury forecasts and budget papers has shown South Australia has the worst economic growth forecast of all mainland states.
Shadow Treasurer Rob Lucas said today that the Australian Financial Review (AFR) last week analysed all Mid Year Budget Reviews (MYBR) produced by State Treasuries and produced the following worrying assessment:
Gross State Product forecast (2006-2007) (%) (Column 2)
AFR, January 11, 2006
“The fact that Business SA’s surveys have also reported that business confidence in South Australia was now at its lowest level in five years is consistent with these figures,” Mr. Lucas said.
“Given last week’s figures from the Australian Bureau of Statistics that South Australia’s headline unemployment rate was already rising significantly from 4.6 per cent to 5.6 per cent in just two months, there are clearly worrying signs on the horizon for job prospects in South Australia.
The independent AFR analysis also shows that budget targets have further worsened in South Australia, more so than any other state. For example, the state budget result in South Australia had deteriorated by 90 per cent in just three months, whilst three other states had improved their budget result in the MYBR and one other state reported a minor deterioration.
“Clearly the Rann Government has lost control of its budget with massive cost blowouts and waste in many portfolios.
“Rann Government mismanagement of its budget and the state economy is becoming more and more apparent every day.”