Government moves to slash State debt

10/9/04
The Gallop Government has paid off $481million in State debt, after returning a record Budget surplus for the 2003-04 financial year.
Treasurer Eric Ripper said a strong economy and Government financial discipline meant a better than forecast surplus of $793million, allowing the Government to drive State debt down to $4.2billion, the lowest level on record.
Releasing the State's financial results to June 30, 2004, Mr Ripper said they reflected high levels of economic activity, including a buoyant housing market, giving the Government the financial flexibility to:

• slash State debt;
• invest in long-term projects like electricity infrastructure, the desalination project and the $1.7billion health reform plan; and
• pump extra funds into school maintenance and reducing hospital waiting lists.

The Treasurer said the Government had anticipated the improved financial position by delivering tax cuts in the 2004-05 Budget, which kicked in on July 1 this year.
"Our tax cuts this year deliver benefits to all homebuyers, but seven out of 10 first homebuyers pay no duty at all," he said.
"We have been able to deliver these stamp duty rate cuts because of our improved financial position and we are the first government in more than a decade to do so."
Mr Ripper said the Government had acted responsibly by using the end of year windfall to reduce State debt and invest in long-term capital works projects.
"The Court-Barnett government put up taxes in five out of eight Budgets and received privatisation windfalls, but they still managed to spend more than they earned, delivering five deficits during their time in office," he said.
"The Gallop Government, on the other hand, has balanced its four Budgets and managed to reduce State debt to record low levels without having to resort to privatisation."
The Treasurer said lower debt levels meant the State would save $32million a year in interest.
"That money can now be ploughed back into essential services for the community," he said.
Mr Ripper said in four Budgets, the Government had increased spending in the community priorities of health, education, law and order, community development and disability services by $1.6billion a year in extra money.
"The evidence of our financial discipline is that we have managed to increase spending in these priority areas while containing overall Government expense growth to an average 4.7 per cent, well short of the Coalition's runaway spending on pointless projects," he said.
The Treasurer said the Government would go into the next election with State finances restored to a sustainable position and a track record of delivering on the community's needs.
Treasurer's office: 9222 8788