New prisons deferred by SA Govt

Plans to build new prisons in South Australia have been put on hold, to save millions of dollars in borrowings.

Treasurer Kevin Foley says it is in response to global financial instability, which has already reduced the state's balance sheet by $280 million.

Mr Foley has told State Parliament a new prison at Murray Bridge will be delayed for two years and a new secure mental health facility at Mobilong and a youth training centre are also being deferred.

"The overall budget impact of delaying this project will improve the Government's net lending outcomes over the period of (financial years) 09-10, 11-12 by $359 million and will ease clearly the financial liabilities to revenue ratio for this period," he said.