New state Treasury forecasts show the Hodgman government is on track to deliver a “modest” 1.6 per cent surplus for the 2017-18 financial year.
Treasurer Peter Gutwein released the Preliminary Outcomes Report 2017-18 on Sunday, spruiking the state government’s “sensible and responsible” budget management.
The report found that the state’s net operating surplus was better than what was detailed in the 2017-18 estimated outcome, provided by government agencies in March.
The preliminary outcome predicts Tasmania’s net operating surplus for the previous financial year to be $97.9 million – a $22.6 million improvement on what was forecast in the estimated outcome.
Revenue from transactions, as outlined in the report, amounted to $6067.4 million, representing a $31.6 million increase on the estimated outcome.
However, expenses from transactions were also larger than they were in the estimated outcome: $5969.5 million as opposed to $5960.5 million.
This was partly attributed to a $58 million increase in employee expenses.
Mr Gutwein said the government was aiming higher in 2018-19, noting it had budgeted for a surplus between 2 and 3 per cent.
“Having a balanced budget and a business sector understanding that they have a government that is prepared to live within its means is improving confidence,” he said on Sunday.
“What [the preliminary outcome] indicates once again is that we’ve had strong revenue growth, we’ll be delivering a balanced budget.
“We hold around $900 million worth of cash, we have a very strong balance sheet position. And our budget position is one that is strong and will ensure that, over time, we continue to improve confidence levels, attract further investment and create more jobs.”
The Treasurer’s Annual Financial Report, due by October 31, will publish the final audited budget outcome for 2017-18.