S&P Global Ratings has tipped its hat to the McGowan Government for delivering a world-leading fiscal balance during a global pandemic.
The credit rating agency this week released a glowing report of Western Australia’s finances in its bi-annual update for WA.
S&P Global affirmed its ‘positive outlook’ on WA’s AA+ rating long-term issuer credit rating, a reflection of WA’s budgetary “outperformance” of domestic and global peers.
In highlighting its positive outlook for WA, S&P global refers to WA’s overall fiscal balance as “strong” despite the global pandemic and the largest infrastructure investment program in history.
S&P Global stated it assessed ‘Western Australia’s financial management to be very strong’ with the McGowan Government’s ‘track record of robust cost control’.
The ratings agency expects WA’s debt-to-revenue ratio to continue to decline over the next few years, in stark contrast to the rising debt of many peers as a result of ‘prolonged lockdowns that necessitated extensive fiscal outlays’.
The McGowan Government has used the State’s strong financial position not only for record investment infrastructure, but to deliver more than $10.6 billion in response to COVID-19 pandemic measures, and make record investments in services such as our health system and social housing.
As stated by Premier and Treasurer Mark McGowan:
“Western Australia’s safe management of the pandemic is providing a soft landing out of the pandemic and delivering one of the best set of books in the world.
“After years of ratings downgrades under the previous Liberal National Government, my Government has put the finances back on a strong footing, enabling us to provide stability for Western Australians.
“A strong set of books gives us the fiscal capacity to fund important initiatives such as our free RAT program for households, $1.7 billion in COVID-19 business support and important infrastructure projects to set up WA’s long term future.
“In the lead up to the State Budget, we’ll continue to keep our finances strong while helping Western Australians by keeping cost of living pressures as low as possible and the economy firing to support local jobs.”
