MYEFO highlights why budget discipline is essential

The Federal Mid-Year Economic and Financial Outlook released today is another example of why we need to maintain careful budget discipline.

MYEFO confirms that GST forecasts are highly volatile, and while Treasury has advised me that on the latest update, Tasmania’s GST returns are consistent with our budget forecasts, we need to continue to strictly manage the budget, because this could change quickly.

Treasury will update its model and revised estimates will be released in the Revised Estimates Report early next year.

We will not make the mistake of former Labor and Labor-Green governments, or other states, of spending money forecast today like there is no tomorrow.

It is exactly because of our ongoing budget discipline that I can confirm that the budget is still on track for surplus in 2016-17.

Last month, ratings agency Standard and Poor’s said that a highlight of the Hodgman Liberal Government was “…very strong financial management” and that it’s assessment of Tasmania reflected it’s view that “…the state government will achieve the bulk of its planned savings”, which is the key to getting the State’s finances back on track after years of Labor-Green mismanagement.

And just last week, respected economist Saul Eslake said that Tasmania is “…in a fairly sound financial position, mainly by (finally) taking control of spending.”

The Hodgman Liberal Government will continue to maintain strict budget discipline, bring the budget back into surplus and also invest in vital frontline services, job creation programs and infrastructure around the State.

Treasury will continue to work through the detail of the MYEFO and its impacts on Tasmania.
Peter Gutwein, Treasurer