The Queensland Government has outlined its interim response to the recently released Commission of Audit into the state’s finances, with Treasurer Tim Nicholls pledging the Government will return the state’s finances ‘to a position of strength’.

 

Speaking in Parliament, Mr Nicholls outlined the Government’s initial response to the Independent Commission of Audit’s Interim Report, which was released on June 15.

 

Mr Nicholls outlined the need for a savings target of over $4 billion over the next three years, revealing a four point plan that will underpin the State Government’s strategy.

 

The four principles outlined by Mr Nicholls are:

  • To stabilise then significantly reduce debt; 
  • To achieve and maintain a general government sector fiscal balance in 2014-15; 
  • To maintain a competitive tax environment for business; and 
  • To target full funding of long term liabilities in accordance with actuarial advice 

 

 

“The Commission of Audit found that achieving an operating surplus is not sufficient for the Government to attain fiscal sustainability or to improve or even maintain its credit rating,” Mr Nicholls said. 



“A fiscal balance is a more accurate reflection of a state’s true financial picture, as it combines the operating balance with capital expenditure. 



“This is why the Government is now aiming to achieve a fiscal balance in 2014-15.”

 

The full response can be found here