The South Australian budget will remain firmly in the black as the state's new Labor government delivers all its election promises amid increasing uncertainty over rising costs and emerging interest rate pressures.
Treasurer Stephen Mullighan has handed down his first budget, which he says begins the process of putting the state's finances back on track at a "pivotal" moment in its history.
As well as delivering surpluses across the next four years, the treasurer says the financial blueprint provides the necessary funding to cover Labor's $3 billion in election commitments.
"The challenge of doing so, however, has been made more complicated by further pressures arising since the state election," Mr Mullighan said in his budget speech to parliament.
"The combination of conflict in Ukraine, record fiscal stimulus and sustained low interest rates have contributed to price inflation not seen for decades across Australia.
"While households and businesses are facing huge additional pressures on their finances, the government confronts not just higher costs for goods and services, but wage pressures and rapid escalation in infrastructure delivery costs as well.
"And the government does so with a balance sheet burdened with record debt levels, operating deficits, and the largest infrastructure program in the state's history still to deliver."
Labor's budget forecasts a surplus of $233 million for the next financial year, growing to $645 million across the forward estimates.
But total state debt will rise marginally more than previous forecasts to hit $33.8 billion by 2025/26
Economic growth is tipped to be steady at 2.25 per cent over the next four years, with employment growth also flat at 1 per cent.
The budget confirms an ongoing infrastructure spend of $18.6 billion, including $7.8 billion on roads, with big spending also on education and health.
Health will receive an extra $2.4 billion over the next five years to employ 350 more paramedics and ambulance officers, 100 more doctors and 300 more nurses.
That will largely account for the extra 1434 public sector jobs by 2025/26, with others in child protection and education.
COVID-19 continues to weigh on government finances, with $200 million allocated for pandemic-related expenses in 2022/23.
Honouring another election commitment, the government has put the cost of returning the Adelaide 500 V8 Supercars race to the city's streets in December at $18 million.
And it has confirmed the cost of a new hydrogen power plant near Whyalla, in the state's mid-north, would be $593 million.
Mr Mullighan said SA had recorded strong economic and employment growth in recent months on the back of the huge financial stimulus provided at the federal level during the coronavirus pandemic.
However, he said it remained beset by challenges, including issues around manufacturing, low wages growth, the nation's worst or second-worst unemployment rate, and GST returns.
"So now, at this pivotal moment in our state's history, we should not seek to return to life as we knew it before the pandemic," Mr Mullighan said.
"Indeed, to do so would be a grave mistake, and a wasted opportunity for South Australia."
Opposition Leader David Speirs said the government had delivered a "beginner budget" that left local jobs growth on life support.
He said the budget also failed to provide meaningful cost-of-living relief.
"South Australians crossing their fingers for urgent cost-of-living support in this rapidly changing economic environment have been spectacularly let down," Mr Speirs said.
