The escalating state debt

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.

About Kenneth Robson

I studied at Adelaide Boys' High School, and the University of Adelaide, Medical School. graduating in 1961. My field of specialisation was Plastic and Reconstructive Surgery. Prior to establishing my practice in Adelaide, I spent 5 years working in India, and Papua-New Guinea, in the field of reconstructive surgery for leprosy. In retirement I joined the Australian Technical Analyst Association and passed the two examinations for a Diploma inTechnical Analysis, and the designation Certified Financial Technician (CFTe) by the International Federation of Technical Analysts.
This entry was posted in Uncategorized. Bookmark the permalink.