Today’s announcement that Moody’s has adjusted the State’s credit rating to Aa2 stable is surprising in the context of the opinion they released only last week and the fact that the budget is now forecasting both operating and fiscal surpluses for the most recent year.
The adjustment highlights that there is still more to be done, and while the budget is back in surplus four years ahead of time there remain significant long-term challenges in the areas of health, education and the State’s superannuation liability that need to be managed carefully.
There is absolutely no doubt that the State’s finances are in much better shape now than under Labor and the Greens, with the budget back in surplus for the first time in six years.
It shouldn’t be forgotten that our credit rating was downgraded under Labor and the Greens.
The decision also highlights that calls by Labor and the Greens to spend, spend, spend are simply not sustainable.
Peter Gutwein, Treasurer
