Moodys, Standard & Poor’s warns SA State Government’s annual interest bill could hit $750 million by 2015
A study by analysts Standard & Poor’s also warns of gross debt rising to as much as 95 per cent of state income by 2015. The company says that would mean SA faced an annual interest bill equal to 4.5 per cent of its income, or about $750 million, to stop the debt growing further.
The latest reviews are based on data available in November, before Mr Snelling revealed a $1.2 billion deficit and increasing debt as part of the Budget update.
The Government plans to cut almost 6000 public sector jobs over the next four years. However, it has failed to reduce the number of public sector employees since announcing savings plans in 2010.