Sound financial management
Victoria today
The Government has delivered sound financial management through responsible budgets, and continuing surpluses are forecast for the next four years. Victoria’s Triple A rating has been confirmed by the two major international credit rating agencies. The level of State Government debt has halved since 1999. Tax cuts valued at more than $1 billion are being delivered by the Government, including the abolition of stamp duty on mortgages.
Challenges ahead
Australia, and Victoria in particular, has enjoyed an historic period of economic growth over the past decade. This has allowed us to substantially increase investment in better services and better infrastructure.
But history tells us that the economic environment will
not always be so good. When economic growth slows, taxation revenue grows more slowly but the demand for government-funded services increases. Continuing sound financial management will be essential for us to achieve our shared goals.
Measuring progress
Continued sound financial management can be illustrated by the Budget bottom line, independent international assessment of our State’s credit rating and economic outcomes. Comparing our overall level of taxation to that of other States demonstrates the competitiveness of our tax arrangements, an important factor in encouraging new investment - and therefore in creating jobs - in Victoria.
- An annual budget surplus of at least $100 million
- A Triple A credit rating will be maintained
- Victoria’s taxes will remain competitive with the Australian average
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