Government Expenses Per Capita Highest Of All States

Government Expenses Per Capita Highest Of All States

South Australia Shadow Treasurer Iain Evans

Labor’s Nine Years Of Economic Failure – ‘SA Worst’

Victor P Taffa

A Report by the Centre for Independent Studies has exposed Labor’s nine years of economic failure.

The report, Tax, Borrow, Spend: How the States Compare, evaluates all the States’ financial management covering debt, liabilities like unfunded superannuation, government spending, public sector jobs and taxation.

It is a damning assessment of Labor’s fiscal management and economic performance, South Australia is rated the worst performing state in the nation.

Overall Results: Average Scores

 

NSW

VIC

QLD

WA

SA

TAS

Position score (/100)

48

57

46

57

46

50

(Tax, Borrow, Spend: How the States Compare, The Centre for Independent Studies, 17/02/2011)

The Report tells the story of Labor’s Mismanagement of the Economy:

“South Australia’s performance is weighed down by a high level of negative net financial worth, high levels and growth rates of general government expenditure per capita, and high tax rates.” (Tax, Borrow, Spend: How the States Compare, The Centre for Independent Studies, 17/02/2011)

The Report makes it clear that large increases in the public service have led to a higher growth rate in Government Expenses, leading to South Australia being the highest taxed state. This has then led to businesses being overtaxed and uncompetitive.

This Report, along with two others from the Institute of Public Affairs and the Commonwealth Grants Commission, makes three reports in the last 12 months that have slammed South Australia as the highest taxed State in the nation.

The report also highlights that Government expenses are out of control:

General Government Expenses per capita, 2009-10:

 

NSW

VIC

QLD

WA

SA

TAS

Indicator ($)

7,645

7,921

8,810

9,237

9,329

9,024

(Tax, Borrow, Spend: How the States Compare, The Centre for Independent Studies, 17/02/2011)

Then-Treasurer Kevin Foley admitted Labor failure to address increasing State expenses during Budget Estimates Committee in October 2010:

The Hon. I.F. EVANS: …Why have you sat on your hands for two years and not dealt with the expenditure issue?

The Hon. K.O. FOLEY: You are absolutely correct…There is no question that the blowout in expenses is our problem.” (Hansard, 07/10/2010)

Minister O’Brien confirmed South Australia is increasing debt to pay the wages of an increasing Public Service:

“We actually have to borrow to pay wages. Now that is unsustainable in the long term. We are in a position as a government if we were being financed by the banks, they would pull the overdraft on us because we are currently, year on year, operating in the red, and that is borrowing.” (The Australian, 17/11/2010)

“The Tax, Borrow, Spend report has summed up perfectly the economic disaster of the Rann Labor Government.” Shadow Treasurer Iain Evans said.

“Treasurer Snelling has made it clear he will follow in Foley’s footsteps, so South Australians can just expect the same economic failure.”

“Treasurer Snelling needs to explain why South Australia is bottom of the pack after nine years of Labor Government.” Mr. Evans said.