Handing down his fourth State Budget this afternoon Treasurer Michael Aird said revenues were down by $1.5 billion and the Government had had to make some hard decisions.

A total of 800 public sector jobs will be cut over the next four years Treasury forecasts in today’s budget have shown the State will remain in the red – with net operating deficits of $117.1 million in 2009-10, $87.3 million in 10-11 and $24.1 million in 2011-12.

It will only be in 2012-13 when the state is expected to return to surplus, with predictions of a $73.6 million surplus.

Despite posting a shortfall in State revenues of $550 million in state receipts – including drops in land tax and payroll tax – the Government has announced spending of $275 million for transport infrastructure across the state.

Other initiatives contained in the state budget include:

• $27 million for irrigation and dam developments;

• an increase in education spending for the first in several years, largely due to Federal Government money

• more capital works spending on health infrastructure in the north than the south for the first time in several years – including $39 million in capital works for major health infrastructure in Launceston, compared with just $11 million on the Royal Hobart Hospital;

• $2 million for Aurora Stadium.

Several new so-called belt tightening measures, aimed at cushioning the blow of the global financial crisis on the state’s finances, have also been announced by the Tasmanian Government – which are expected to result in the loss of 800 jobs within the public sector.

New cost-cutting measures announced by the State Government in today’s budget include:

• Review of middle management within Government departments;

• Wage freeze on MP salaries for the next year;

• Wage freeze on salaries for members of the Senior Executive Service;