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Thursday, May 31, 2012

Ratings downgrade as SA budget makes deep cuts

South Australian Treasurer Jack Snelling has made deep cuts in his second state budget, as the Government aims to achieve savings of about $800 million.

The SA budget will have deficits approaching $1 billion per year for the next two years.

Mr Snelling does not expect the books to be back in the black until 2015-16, a year later than had been hoped.

About half the budget savings in 2012-13 are to come from the suspension of electrification work on two rail lines in Adelaide's northern suburbs, the Gawler and Outer Harbor lines.

Mr Snelling is keen to point our the budget has no new taxes but some earlier measures have been abandoned.

Removing a payroll tax exemption on hiring apprentices is expected to save about $120 million.

An abolition of stamp duty will no longer happen on some property and share transactions.

About 1,000 public service jobs are to go as government agencies are required to trim 1 per cent from their budgets.

The Government says that will be offset by 400 new jobs being created. Read More