Yesterday’s announcement that the Queensland Budget will suffer a further $3 billion in revenue write-downs confirmed what I have been saying for a while now about Queensland’s under-performing economy. I am quoted in today’s Courier-Mail (pay-walled, sorry) noting that the news reinforces the need to be prudent in spending and to consider privatisation of government-owned businesses. The ratings agencies (Moody’s, S&P, etc) will take a dim view of our fiscal performance if we cannot control spending and show a credible path to a fiscal surplus. I am quoted this morning as follows:
Former Commonwealth Treasury official Gene Tunny said the revenue writedowns delay hopes of Queensland reclaiming a AAA credit rating and highlight the need to sell or lease state-owned assets.
“I think the rating agencies will take a very dim view of that,” he said.
“It just underlines the need for prudent spending and the consideration of asset sales.”