The Andrews Labor Government today welcomed the confirmation of Victoria’s triple A stable credit rating by international agency, Standard & Poor’s.
Standard & Poor’s said the rating reflects our state’s ‘very strong financial management and economy’, and ‘Victoria’s strong budgetary performance and low contingent liabilities’, endorsing the measured and strategic approach taken by the Andrews Labor Government to Victoria’s budget.
The rating agency also observes that ‘Victoria’s economy is very strong compared to peers’, with Gross State Product (GSP) high by international standards.
Victoria continues to have an AAA rating from both rating agencies. NSW is the only other Australian state rated triple A stable by Moody’s.
The confirmation from Standard & Poor’s comes in the same week as Victorian Treasurer Tim Pallas spoke of the need for a serious and sensible conversation about the role of public debt in meeting our infrastructure needs.
The Labor Government’s Plan for Jobs and Growth, released in 2012 as part of its election commitments, states that:
“Debt also has a role to play to ensure that the cost of projects is equitably shared over the life of major infrastructure works. The Victorian Government must lead the public discussion about the scale of borrowings needed to support the most necessary infrastructure investments."
Any such infrastructure would need to be rigorously costed, have a positive benefit cost ratio, and be of state significance for Victorians.
The Andrews Labor Government made an election commitment to secure substantial operating surpluses and maintaining a triple-A rated economy – and that commitment will continue to be honoured in full.
Quotes attributable to Treasurer Tim Pallas
“Standard and Poor’s has confirmed its confidence in Victoria’s economy, and the strong financial management we have brought to our state’s finances.”
“The former Labor Government secured Victoria’s triple A credit rating, and the Andrews Labor Government is now implementing a robust yet measured fiscal strategy to keep it.”
“Investing in tomorrow’s infrastructure today is key to maintaining Victoria’s world-leading quality of life, attracting the world’s best and brightest and growing our economy to create jobs.”
Reviewed 26 June 2020