TREASURER Michael Aird’s forthcoming State Budget must honour one key election commitment made by Premier David Bartlett and his Labor Party.

That is to be fiscally responsible and bring the Budget back into surplus as soon as possible.

The Tasmanian economy and Tasmanian people demand this. The Government’s fiscal strategy must be built around responsible expenditure directed towards infrastructure rather than building public service numbers, and taxation reform that enables business to prosper and provide new employment for Tasmanians.

The Labor and Green parties collectively committed almost $1 billion in new spending through the election campaign.

However, the Tasmanian Chamber of Commerce and Industry (TCCI) chief economist Richard Dowling says this level of spending is unsustainable and there should be no expectation that the election promises made by the two parties in government will be delivered.

“No single party won a majority at the recent election, so no party received a mandate to implement all of its election policies and promises,” Mr Dowling said.

“However, the one crucial promise that must take precedence over all others is the commitment to be fiscally responsible and balance the books.

“The State Government must follow the Commonwealth’s lead and return to surplus early and the revised GST forecasts provide the opportunity to achieve this.”

Mr Dowling said the State Government’s financial update three months ago forecast the state returning to the black in 2012.

But the May Federal Budget shows Tasmania reaping and additional $390 million more than predicted in GST revenue over the next three years.

“This means the State budget should return to surplus a year earlier - 2011.

“We’ve got a $390 million windfall above what we were expecting just a few months ago and that gives us a realistic chance to get to get to a surplus earlier, without a big slash-and-burn exercise.

“The increase in GST payments represents a pretty significant upgrade and it certainly presents an opportunity for Tasmania to improve its own bottom line and actually try to return to surplus a year earlier.”

Treasurer Michael Aird has so far refused to be drawn on the prospect of an early surplus or the Governments fiscal strategy in the Budget to be delivered on June 17.

Mr Dowling said business was looking for a Budget that had a heavy emphasis on building for the future.

“Infrastructure investment has been neglected in Tasmania over recent years, with out of balance spending priorities that has seen 55 cents in every dollar from the $4 billion State Budget spent on public sector employee costs and just eight cents on infrastructure.

“The only way to fix this is to spend less on public sector wages so that more funds can be allocated back to building roads, bridges, our rail network, schools and hospitals - Tasmania’s vital economic and social infrastructure.

“Put simply, recurrent spending is unsustainable and capital expenditure has been starved. The TCCI is looking for a better balance in the 2010-11 Budget and beyond and the extra GST funds provide the opportunity to achieve this,” Mr Dowling said.