NSW Treasurer Daniel Mookhey says the state’s AAA credit rating will almost certainly be downgraded as a result of the GST “rip-off”.
A speech by NSW Treasurer Daniel Mookhey to be delivered today to the McKell Institute details how the shortfall in GST revenue allocated to NSW will impact on the budget he is due to deliver in June.$11.9 billion over the next four years. T
Mookhey says the state’s AAA credit rating will almost certainly be downgraded as a result of what he calls the GST “rip-off”. The state’s premium credit rating has been a feather in the cap of the NSW economy for a long time and it should not be given up lightly. It brings very real benefits. The rating is a measure of how risky a borrower is regarded to be and of the borrower’s expected willingness and capacity to repay any debt on time.
Mookhey tells us that despite the state temporarily being forced to go into the red, we should expect a continued longer term focus on cutting state gross debt. He describes this as an insurance policy for the next economic shock that at the same time slashes interest payments. Most would accept the wisdom of having a buffer against uncertainty and what may be just around the corner.
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