Doing nothing is not a responsible option
Tasmania's Department of Treasury and Finance has issued a dire warning about the state's finances, saying they are forecast to "rapidly deteriorate" and the state does not have the ability to grow its way out of the problem.
In effect, Tasmania will be borrowing significantly more money just to pay the interest on existing debt.
Eventually the growth in interest expenses will become so great that no reasonable reduction in services will be capable of achieving budget repair.
State Liberal Treasurer ERIC ABETZ must put Tasmania first, above self interest, pride, party ideology or politics.
He must TAKE THE ADVICE of The Department of Treasury and Finance who are actually qualified to guide Tasmania out of this mess - stop believing his own publicity, step aside and let the experts make financial decisions to save Tasmania from turning into a failed state with crumbling health care, failing infrastructure and spiralling debt.
If he refuses to do this he will be remembered as the Treasurer that plunged Tasmania into a dark period of recession that will take generations to recover from (assuming the next generation stay here).
The cost of servicing this debt would increase from 2 per cent of operating revenue to more than 50 per cent within 15 years, while deficits would become "increasingly unmanageable".
"Without action, the annual growth in debt servicing costs is projected to exceed the growth in state revenue within 10 years,"
"Eventually the growth in interest expenses will become so great that no reasonable reduction in services will be capable of achieving budget repair."
IF YOU HAVE TROUBLE BELIEVING THIS...
The 2026 Fiscal Sustainability Report (FSR) was prepared by the Department of Treasury and Finance in accordance with the provisions of the Charter of Budget Responsibility Act 2007.