This was a budget with an eye on the next State election in 2010. The Government put money into a football stadium, the trial desalination plant and the electrification of Adelaide’s rail network. These are three things that the Liberal Opposition has been pushing recently! The Government’s response suggests it is sensitive to its standing in the polls and a little less confident. Borrowings to fund this capital works will mean the state debt, estimated at about $82 million this year, will start to rise to $610m and, by 2011-2012, be close to $2 billion.The Treasurer claims the debt will be managed by large operating surpluses averaging about $350 million a year until 2012.
The big ticket item in the Budget is public transport infrastructure. Adelaide’s major rail lines will be electrified. The program will start with the Noarlunga line later this year, finished by 2013-2014. While there aren’t any announced plans to extend the line to Seaford, there is a Budget line of $2.25 million to start securing a rail corridor to Aldinga. A further $162 million is allocated to extend the tram line from North Terrace to the Adelaide Entertainment Centre and for new light rail stock. The extension is expected to be completed by 2010.
In response to the Mullighan Inquiry the Government has earmarked $190 million over four years for the expected increase in children in care. It’s predicted that children in care will increase by 8 per cent per year so this injection of funds is very timely.