From the Fringe to fashion, South Australia has made a name for itself as the nation's 'Festival State'

But the mantle seems under threat, with the Adelaide Motorsport Festival and Adelaide Fashion Festival on the chopping block as the South Australian government makes "tough decisions" in the face of a crippling budget shortfall.

"This is a tough budget," South Australian premier Steven Marshall said.

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"We've had around $2 billion cut from our income over the next four years and we've had to make some tough decisions."

Fashion and motorsport

Those "tough decisions" include cutting $2 million from the Adelaide Fashion Festival, the state's major platform for local established and up-and-coming designers.

Now, rev-heads have felt the budget burn - with the Adelaide Motorsport Festival facing cuts.

Marshall says the festival will still continue, albeit in a scaled-back fashion.

"We're very supportive of South Australia remaining the festival state, but we make no secret of the fact this is going to be a tough budget," he said.

It's not only festivals facing the executioner.

Not-for-profit Brand SA will promote the state no more, after the government pulled $1.6 million in funding from the organisation.

While the mining sector is also set to suffer, with a five per cent hike to fees across the board and a new 70 per cent 'exploration fee' at Olympic Dam.

With the state budget to be revealed next month, there are fears for what else could be in the firing line.

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