Credit rating must be included as accountability measure in ACT budget
The Canberra Liberals are calling on the ACT Labor-Greens government to include the credit rating as an accountability measure in future budgets following S&P’s decision to downgrade the Territory from our triple-A credit rating.
Earlier this year S&P Global downgraded the Territory’s credit rating for the first time in two decades.
The most recent budget papers released before the credit rating downgrade showed that the ACT Government’s borrowings are forecast to grow to $17.4 billion by 2026-27, with interest costs of $614 million per year, just over $1.6 million a day.
Canberra Liberals Leader Elizabeth Lee said the Treasurer confirmed during annual reports hearings last week that interest rates on new borrowings will be higher due to the rating downgrade.
“The budget papers that Andrew Barr has provided in this term of government do not include any objective to maintain a triple-A credit rating,” Ms Lee said.
“This is in stark contrast to what was included in the budget a decade ago.
“Maintaining a triple-A credit rating ensures that the ACT Government can retain favourable borrowing costs and access to a broad investor base for government borrowings.
“This credit rating downgrade will increase interest rates on the billions of dollars that the government plans to borrow in the forward estimates.
“With this Labor-Greens’ government’s interest repayment bill costing Canberrans over $1 million per day, and growing, the downgrading of our credit rating will make it even more expensive for Andrew Barr to pay back his spiralling debt.
“Wasting hundreds of millions of Canberra taxpayers’ money on failed HR IT systems and dodgy procurements has clearly impacted on the state of the ACT budget, all under the watch of Andrew Barr.
“This motion will provide businesses and consumers confidence in the ACT’s economy through additional scrutiny on this government’s ballooning costs on infrastructure projects which do not provide value for money.” Ms Lee concluded.
