South Australia has taken a $376 million hit in the past month mainly due to a fall in commonwealth GST revenue, Premier Jay Weatherill says.
Revenue loss directly attributable to Holden’s 2017 closure and its impact on economic conditions is $14.2 million in 2016-17 and continuing thereafter.
The premier updated the state’s budget position on Wednesday, repeating his call for the federal government to contribute $333 million to SA’s plan to deal with the Holden closure.
He said the update showed a $303 million deterioration in the state’s GST receipts as well as the impact of the Holden announcement on SA’s revenue and predicted employment levels.
“It is also very clear there is very little room for big spending initiatives,” he said.
Ahead of the March 15 election, the opposition had committed about $900 million in new spending across the forward estimates, he said.
The update also shows a $68.1 million write-down in payroll tax revenues.
The Holden closure is expected to lead to the loss of 1500 jobs in 2016 and 4600 in 2017, the premier said.
The update also shows lower-than-expected economic forecasts including reductions in gross state product and employment of 0.25 per cent in 2015-16 and 2016-17.
Opposition Leader Steven Marshall said the update showed another significant reduction in projected jobs over the forward estimates since the premier released his midyear budget review in December.
“In 50 days, Mr Weatherill has managed a spectacular $376 million collapse in his budget – that’s $7.5 million per day,” he said.
He said the premier was desperately trying to blame Holden for his own economic woes.
“The reality is that after 12 years of Labor, our economy is suffocating to death with high taxes, burdensome regulations and a government not willing to back business to grow our economy.”