The credibility of the Keneally Labor Government’s 2010-11 Budget has been called into question for failing its own financial targets, Shadow Treasurer Mike Baird said today.
“The Keneally Labor Government’s latest Budget fails on 4 of the 5 targets of fiscal responsibility according to its own legislation,” Mr Baird said.
“And on the only target it claims to have passed, unfunded superannuation, the liability has blown out from $14 billion in 2007 to $28.7 billion by 2014.
“It is clear that this Budget is not about strategy or indeed restoring the economy of NSW, it is a last-ditch attempt to retain power.
“The Financial Responsibility Act was introduced with great fanfare in 2005 to demonstrate that this State Labor Government was financially responsible.
“It will come as no surprise that the Keneally Labor Government has ditched any reference to this Act and will do whatever it takes to win the next election.
“This lack of financial responsibility is further seen in the State Labor Government’s inability to control expenses, which have averaged 8 percent in the last four years and exceeded forecasts.
“Last year alone expense growth blew out to 9.6 percent from the forecast 7.6 percent, which has cost NSW taxpayers almost $1 billion.
“The State Labor Government’s track record calls into question the credibility of their forecasts, which depict expense growth for the next four years at 3.4 percent.
“If these forecasts are not achieved then there will be a multi-billion dollar hole in the Budget bottom line.
“The ongoing concern is that if the Keneally Labor Government does not get its expenses under control, then NSW will not have the funds to build the infrastructure of the future.
“The people of NSW have lost trust in this Labor Government, as it has proved it is more interested in taking care of itself than delivering for the State.”
Goals and performance – Financial Responsibility Act 2005
Progress Indicator
Legislative Target
Status
Medium Term
General government sector net financial liabilities
At or below 7.5% GSP by June 2010
11.5% (June 2010)
FAIL
General government sector net debt
At or below 0.9% of GSP (level at June 2005.)
2.7% (June 2011)
FAIL
Long Term
General government sector net financial liabilities
At or below 6 per cent of GSP by June 2015
10.0% at June 2014
FAIL
General government sector net debt
At or below 0.9% of GSP (level at June 2005.)
2.5% at June 2014
FAIL
Total state sector unfunded superannuation liabilities
Eliminated by 30 June 2030
$28.7 billion at 30 June 2014
MEDIA: Lisa Harrington - 0406 726 880
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