After delivering the largest budget turnaround in New South Wales history, the Minns Labor Government’s responsible financial management continues to be recognised by global ratings agencies.
Moody’s has reaffirmed the State’s Triple-A credit rating with a stable outlook – the highest possible rating.
Moody’s emphasised the Government’s approach to stabilising debt and reducing new borrowing to fund infrastructure.
It highlights the Government’s commitment to sensible fiscal management and ongoing improvements in the State Budget, even as we balance substantial infrastructure investment and service delivery demand.
Each year we have reduced the deficit and are on track to return the Budget to surplus next year.
We have done this by cutting wasteful spending and having the lowest level of expense growth in mainland Australia. Debt is also $9.7 billion lower than the former Liberal Government planned, saving $400 million each year in interest expenses.
We have a plan to control the state’s debt without increasing costs for households.
The State’s infrastructure investment program, which was 83 per cent debt funded in 2022, is now 53 per cent funded by borrowings.
These significant improvements demonstrate how the Government is repairing the State Budget while still investing in housing, hospitals, schools and transport.
Moody’s particularly noted the Government’s continued efforts to keep spending under control through:
- Productivity-linked wage bargaining
- Workers’ compensation reforms
- A comprehensive expenditure review which identified $13 billion in savings
The Moody’s announcement completes a hat-trick of positive determinations.
Earlier this month, S&P Global lifted NSW’s AA+ rating to a stable outlook and Fitch reaffirmed its Triple-A rating.
Treasurer Daniel Mookhey said:
“In a period of global economic instability, this announcement from Moody’s is significant.
“It is further confirmation that NSW is on the right track and public funds are being managed in a responsible and considered way.
“The Coalition left behind record debt and deficit and the task of budget repair is far from done.”
Finance Minister Courtney Houssos said:
“We welcome this announcement from Moody’s as confirmation that the careful, diligent and sometimes difficult decisions we’ve made are improving the state’s financial position.
“Moody’s specifically recognised the $13 billion worth of savings identified in our comprehensive expenditure review as contributing to their decision. We’ve delivered 95% of those savings and have a clear plan to deliver the rest.
“At a time when families and businesses are facing increasing cost of living pressures, our Minns Labor Government is delivering stability, discipline and confidence.”
