The first task of the Hodgman government when it won the 2014 election was to request Treasury to report on State finances. The subsequent report, Analysis of Budget Risks, in April 2014, was essentially an update of the Revised Estimates Report for the 2013/14 year prepared in February 2014.
Budget reports always cover a four-year period, the budget year plus three years of forward estimates. The April 2014 report noted by the end of the forward estimates the State was facing net debt of $400 million. The deterioration in net debt over the four-year period was $600 million. Net debt increases when spending is greater than receipts. Cash deficits totalling $600 million were projected over four years.
After whipping up outrage at the incompetence of the previous government, then Treasurer Peter Gutwein reassuringly told Parliament on 8th May 2014: “We are committed to fixing the Budget”. Will Hodman’s resignation speech of 14th January 2020 made the claim that “….we have delivered our plan…to manage our Budget, taking it from deficits to surpluses.” The release this week of the Revised Estimates Report for 2019/20 makes now a convenient time to check.