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SA Budget « Previous | |Next »
June 7, 2008

The Rann Government's 2008 Budget was notable for the shift away from the neo-liberal emphasis on debt reduction and balanced budgets to investment in infrastructure through the use of debt.

The infrastructure investment is headlined by upgrading (electrifying) the rail network to the outer suburbs (Noarlunga then Outer Harbor). There is no extension to the rail network (eg., Victor Habor to Noarlunga). There are minor extensions to the very small tram network, a desalinisation plant to address water shortages and some hospital upgrades.


The Rann Government's spin is that a boom is going to happen any time soon. The big future hope is that the planned expansion of the Olympic Dam uranium and base metals mine will enable the economic good times to continue to roll.

| Posted by Gary Sauer-Thompson at 2:15 PM | | Comments (4)


Is there a good reason why mining royalties are not being raised?

Presumably, they cannot afford to upset corporate Australia before the mining boom actually happens. I also presume there are lots of public subsidies to help BHP-Billiton get things going.

Qld did the same, increased debt to build infrastructure. They also removed some state taxes on property purchases, which are supposed to lower the cost of a home, but will probably be gobbled up by increased valuations.

The centrepiece of the announcement is an extension of the Glenelg-city tramline to West Lakes, Port Adelaide and Semaphore at a cost of $162 million.

The Noarlunga and Outer Harbour train lines will be electrified.