Friday, 08 November 2013
S&P confirms the strength of Victoria's finances
Victoria remains the only Australian state with a AAA credit rating and a stable outlook from both major ratings agencies, Treasurer Michael O’Brien announced today.
Standard & Poor’s (S&P) today reaffirmed Victoria’s AAA stable credit rating, its highest possible rating, and commended the Victorian Coalition Government’s financial management.
“Today’s announcement confirms the Coalition Government is managing Victoria’s finances well in challenging times and that we have the right strategy to safeguard the state’s economic future,” Mr O’Brien said.
S&P reported: The state has continued to demonstrate fiscal discipline through its response to ongoing revenue challenges. The government has made difficult political decisions, including containing wage growth and reducing the number of public servants.
Victoria's own financial strength is evidenced by its prudent approach to debt and liquidity management, as well as the development of medium- and long-term fiscal and economic strategies. It has a history of economic
reform that will over time increase the productivity of the state. We don't expect the commitment to fiscal discipline to change over the life of the current parliament.
Mr O’Brien said that today’s announcement highlights the need for strong fiscal discipline to support the record infrastructure investment and services that the Coalition Government is delivering for Victorians.
“Our AAA credit rating means our interest bills are lower, leaving more funds for infrastructure and frontline services,” Mr O’Brien said.
“Since coming to office we have cut our cloth to fit and set about repairing the structural budget deficit created by Labor. We have implemented savings and revenue initiatives averaging around $3 billion a year over the 2013-14 Budget and forward estimates period.
“However, the Labor Opposition has opposed every significant savings measure that we have delivered. These savings measures have been critical to maintaining our AAA credit rating and demonstrates that Labor would be an economic threat to Victoria,” Mr O’Brien said.
“Retaining our AAA credit rating with a stable outlook sends a strong message that Victoria is a great place to invest and do business,” Mr O’Brien said.