When will Queensland get its AAA credit rating back?

I’m unsurprised by Wayne Swan’s announcement the surplus is unachievable – it always was, even when the outlook was better, as I posted on previously (Budget turnaround looks implausible in Treasurer’s chart). Also the Queensland budget update today contained no surprises, and the slight downgrade to the economic outlook was expected given recent sluggishness in the labour market and reductions in coal prices. This slight downgrade in the outlook has no real impact on the fiscal repair task over the next few years, as shown in the important debt-to-revenue ratio chart (reproduced below) from the update. Incidentally, reflecting on this chart, it’s going to take the Government a long time – possibly not until 2020 or after – to get the debt-to-revenue ratio down to 100%, which is where we really need it to be to convince the ratings agencies to give us our AAA credit rating back. Treasury will need to keep up the pressure for fiscal restraint in the years to come.

debttorevenue

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One Response to When will Queensland get its AAA credit rating back?

  1. Pingback: Govt should embrace Costello Commission of Audit privatisation recommendations | Queensland Economy Watch

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