IN A state budget heavily focused on major transport infrastructure projects, job creation and a $4 billion stimulus package to lead SA's recovery from the COVID-19 pandemic and last summer's bushfires, agriculture and the regions did not miss out.
The government's primary industries spend is projected to increase by $52.4 million, while more than $1.6b will be spent on new measures to support regional SA.
The increase in primary industries expenses from $206.2m in 2019-20 to $258.6m in 2020-21 is largely due to a $40.5m increase in grants and subsidies to primary producers.
The budget outlined that their Agricultural Services net cost would increase from $34.9m to $55.3m primarily due to the ongoing Drought Support Program, Cudlee Creek and Kangaroo Island bushfire response and recovery programs and further investment in the On-farm Emergency Water Infrastructure Rebate Scheme.
The government's net cost for SARDI will decrease from $21.9m to $19.5m, which was attributed to changes in externally funded projects.
The state's biosecurity net cost spend will increase from $34.9m to $36.9m, which includes the state government contribution towards the upgrade of SA's dog fence.
Primary Industries and Regions Minister David Basham said the government was investing more than $1.6 billion in new measures to support wider regional SA, including more than $187m in key measures for PIRSA.
"We will continue to provide support to our primary producers who need it through our bushfire recovery programs and our Drought Support Package," he said.
"SA's regions will be critical to our economic recovery from the COVID-19 pandemic which is why we are investing in our agricultural industries to increase productivity and create jobs.
"Our Regional Growth Fund has been successfully backing our regional economies since its introduction in 2018 and the extra funding in this year's budget will provide immediate stimulus investment in our regional communities."
The $1.6b in new regional spending includes $293.1m towards bushfire response and recovery. $85.3m of that will provide financial support to eligible individuals, volunteer firefighters, small businesses and primary producers to support them in the aftermath and recovery efforts.
More than $900m will be directed to rural transport infrastructure projects, with $135m in upgrades to the Strzelecki Track over three years, $35m in upgrades to the South Eastern Freeway, and a $52m regional road network package over three years - encompassing upgrades to the Stuart, Dukes, Spencer and Riddoch Highways - the biggest projects.
More than $20m will be spent on infrastructure works in regional health facilities during the next two years, with another $20m to establish a Tourism Industry Development Fund grant program for regional accommodation and tourism providers.
In good news for those producers still recovering from drought, $20.9m will be funneled towards a Drought Support Package aimed at supporting farming families, local businesses and rural communities dealing with drought conditions.
During the 2020-21 and 2021-22 financial years, $5m will be spent on increasing mental health services to support bushfire recovery, with $2.6m across four years to 2023-24 targeting community wellbeing and resilience programs for those impacted by the fires.
Funding for feral pig eradication on Kangaroo Island will continue, while another $7.7m will be spent on measures to reduce post-bushfire biosecurity risks.
COVID recovery at forefront of budget stimulus package
IN an effort to spark a statewide recovery from the impacts of the COVID-19 pandemic, the 2020-21 state budget includes a total $4 billion state economic stimulus package.
The package includes a $330 million COVID-19 response, $851m tradies package and $305m bushfire response and recovery.
The package will leverage a further $1b federal, local government and business spending to ensure a total stimulus package of $5 billion.
As a result of this spending a deficit of $2.6b is forecast for this year and debt will rise to $33.2b according to forward estimates, but a surplus to start eroding that debt is predicted by as soon as 2023-24.
In his budget address, premier Steven Marshall said he was proud of the state's efforts in combating the COVID-19 pandemic and wanted that same resolve shown in the ongoing recovery phase.
"Together we've thrown everything at this virus to save lives, to save jobs and businesses and to create new ones to cement SA as the safest state in the safest nation and collectively we're all the beneficiaries of the individual sacrifice and as Premier I couldn't be prouder," he said.
"In this budget, we're responding with the same strength and resolve to jump-start our economic recovery and to create thousands of jobs."
Treasurer Rob Lucas described the budget as one "like no other".
"Everything that I've seen in my public lifetime doesn't compare with the circumstances that we have now in the context of the preparation of this particular budget," he said.
"We want to provide a jolt, a two-year stimulus to the economy to jump-start it whilst at the same time put in place the basis for long-term sustainable jobs growth in our state.
"The two-year stimulus package is time-limited so that it doesn't lock in unsustainable long-term spending, but at the same time maintaining long-term infrastructure projects.
"The narrative we've adopted pre the election and since the election consistently is that if a small state like SA is to create jobs and to grow our economy, the cost of doing business in SA have to be nationally and internationally competitive.
"What we've done for the first two years, what we've outlined in this budget and what we need to do in the future is to keep that long-term narrative in mind."
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