South Australia Treasurer Tom Koutsantonis handed down a Midyear Budget Review earlier this week that boasts a $355 million surplus this year, driven by a huge and unexpected dividend from the Motor Accident Commission.
According to an Advertiser report, because the state’s economy is predicted to grow at about half the national average every year until 2019, Mr Koutsantonis has also been forced to slash expectations for job growth.
After predicting 1 per cent employment growth over the current 2015-16 financial year, or about 8,000 jobs, the government has downgraded its prediction to just a quarter of that amount.
Mr Koutsantonis insisted the state government’s strategy to revive the economy was sound, and that he would look at new ways to use projected surpluses to accelerate growth.
The Budget update included bringing forward the first tranche of business property sales tax cuts, which were announced in June and meant to kick in on July 1 next year.
