A day after he delivered South Australia's state budget, Treasurer Tom Koutsantonis dismissed opposition criticism of forecasts that showed state net debt would reach $53.6 billion by mid-2030.
Work is continuing on the $15.4 billion Torrens to Darlington tunnel project, which will complete Adelaide's north-south corridor link, and the new Women's and Children's Hospital, which has a $3.2 billion budget widely expected to require extra funding.
"My question to the political opposition is … which project do we cancel?" Mr Koutsantonis said.
He rejected calls to impose tolls on the new route, saying the government had "no mandate" and "no permission" from the public.
"We can afford to pay this money back. This is not a lot of debt," he said.
"We are carrying moderate levels of debt in comparison to the rest of the country in terms of debt to revenue."
The government said on Friday $1 billion worth of contracts for the tunnel project had been awarded to more than 300 local businesses.
In a bulletin assessing the budget, international ratings agency S&P Global said SA's rising debt would "remain average compared to those of its domestic peers".
The general strength and wealth of the local economy and solid financial management supported its credit rating of AA+ Stable for South Australia, S&P said.
But it warned it could lower the rating if the state ran persistent deficits.
SA Opposition Leader Ashton Hurn said the budget papers showed an extra $278 million in payroll tax over the next four years but the government had no plan to help the businesses paying it.
"Businesses are working their guts out and paying more payroll tax than ever, only to watch a government that can't control its own spending," Ms Hurn said.
"It's a blatant double standard. Labor expects businesses to tighten their belts and absorb rising costs, while it has blown its own budgets by more than $6 billion over the past four years."
Flinders University public policy lecturer Josh Sunman told AAP the budget contained "a couple of little sweeteners" and a "surprisingly significant investment" in education.
The government will introduce free public schooling, a second phonics check for year 2 students, preschool for three-year-olds has been brought forward, 68 primary schools will get out-of-school-hours care and there is $210 million for school infrastructure.
"There was more there than I was expecting," Mr Sunman said.
SA Unions warned the budget's partial hiring freeze for public servants, expected to save $120 million, could increase pressure on frontline services, despite Mr Koutsantonis ruling out cuts to frontline staff.
Secretary Dale Beasley said "frontline workers don't operate in a vacuum".
"Every nurse, police officer, teacher, and paramedic relies on a network of workers who support them to do their job effectively," he said.
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