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Finance
Tim Dornin

Health spending boost as SA budget slides into the red

More money will be allocated to health when the South Australian budget is handed down on Thursday. (Roy Vandervegt/AAP PHOTOS)

The South Australian government will deliver a health and housing budget along with significant cost-of-living relief as it pauses plans to return the state's finances to surplus.

The government says health remains its top focus in Thursday's financial blueprint but efforts to ease the housing crisis will also feature along with the biggest cost-of-living assistance package in the state's history.

At the same time, a previously forecast budget surplus of $203 million for 2022/23 will become a $249m deficit on the back of increased health spending, lower GST returns and the cost of relief measures following summer's flooding along the Murray.

Treasurer Stephen Mullighan said the government still aimed to deliver budget surpluses going forward but its plans would be put on hold for 12 months.

"We were trying to transition the budget from an $830 million deficit back into a surplus under the first year of this government but with the additional pressures on the budget in health and from floods and a bit less GST than we were expecting, we've had to delay those plans by a year," the treasurer told reporters on Wednesday.

"We've taken the responsible decision to continue to invest in supporting the community where necessary."

Mr Mullighan also pledged to honour Labor's promise of no new or increased taxes.

In its latest health announcement ahead of the budget, the government committed $130m for virtual health care to help free up more hospital beds.

Two existing programs will be expanded to provide further ways people can access health care away from emergency departments.

The children's virtual care service has already helped more than 24,000 patients and an adult service about 18,000 people since they began operating in 2021.

Premier Peter Malinauskas said the state budget was where the "rubber hits the road" and would speak to where the government's priorities were.

"We've made it clear our ongoing priority is health and we also want to see an improved outcome for housing in South Australia," he said.

But the Liberal opposition called for more action to ease hip pocket pain.

"Broad cost of living relief for all South Australians remains at the top of our wish list for this year’s budget," Opposition Leader David Speirs said.

"While other states like Queensland, Victoria and Western Australia have implemented schemes to support their households, Labor’s left South Australian families in the lurch."

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