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Budget repair paying dividends

Disciplined spending restraint is paying off for Treasurer Ben Wyatt and the Western Australian State Government, with the State’s credit outlook today revised up to ‘stable’.

The State Government, like WA businesses and households, has had to cut back its spending to keep its head above water.

This commitment to budget repair is now paying dividends for West Australians and the State Government should be congratulated for their efforts.

It might be boring, but responsible fiscal management must continue if we want to avoid spending $1 billion a year on interest payments.

Today’s credit rating announcement builds on last month’s release of the 2017-18 Annual Report on State Finances, which confirmed that the State Government remains on track to achieve a surplus by 2020-21, while reducing net debt by $3.2 billion since the 2017-18 Budget forecast – welcome news for WA business and households alike.

The Chamber of Commerce and Industry WA (CCI) has consistently recommended to the State Government that the objective of budget repair should be to return the Government to pre-boom size, to continue focussing on reduced spending growth and to maintain its commitment to achieving a surplus.

This surplus should be combined with asset sales to reduce net debt and regain the State’s triple-A credit rating.

No tax increases are necessary to regain the WA’s triple-A credit rating, to significantly reduce net debt or to return to surplus – it will only damage economic recovery.

CCI looks forward to continuing to work with the State Government to lift confidence in businesses and households by creating a stable investment climate to boost WA jobs and continue the State’s economic recovery.

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