Treasurers are not Santa Claus on Budget day because the reality of the role is very different
THE idea of a treasurer standing in parliament on budget day as Santa Claus clad in a business suit is at odds with the reality of the role, writes NSW Treasurer Dominic Perrottet who is confident his budget will keep the state moving confidently into the future.
Opinion
Don't miss out on the headlines from Opinion. Followed categories will be added to My News.
THE countdown is on: today marks two months until this year’s state Budget, and preparations are in full swing.
While I understand not everyone might get as excited about a budget as I do, there’s no question June 19 will be a hugely important milestone in the work our government is doing to improve the lives of people in NSW.
The idea of a treasurer standing in parliament on budget day as Santa Claus clad in a business suit is at odds with the reality of the role — to deliver sustainable economic growth which benefits the community and ultimately improves people’s lives.
A budget is a huge responsibility, and just like managing the family finances, there are plenty of challenges to overcome and tough decisions to be made.
By forcing government to live within its means, we have been able to deliver consistent, strong surpluses, and put them to work for the people and communities of NSW.
It’s imperative to make the right decisions, and even in an economy as robust as NSW, there are some clouds on the horizon.
The position our state is in is so much better than eight budgets ago when the Liberal-National government was elected with a clear mandate to revitalise NSW.
Back then the NSW economy wasn’t just stalled, it was bogged chassis deep in mud. We needed to work hard to free it from the mire and get it driving again.
Our Labor predecessors had no plan to get NSW moving, and no capacity to build the critical infrastructure our growing state needed. By forcing government to live within its means, we have been able to deliver consistent, strong surpluses, and put them to work for the people and communities of NSW.
Those surpluses have been essential in helping us to rebuild the state’s crumbling infrastructure, with major road, rail and other backbone projects.
This in turn has restored confidence in our economy, with businesses investing, almost half a million new jobs created, and NSW maintaining the lowest unemployment in the nation for more than two years.
But we don’t deliver surpluses and build infrastructure just for the sake of it. We do it to support the growing communities that are beginning to thrive once again — to make NSW the best place anywhere in the world to live, work, run a business and raise a family.
The long-expected cooling in the property market may mean good news for those seeking to get in to the market, but it also means the decline in stamp duty revenue that we forecast in last year’s budget is materialising.
Last year I was able to deliver a budget that took the next step, providing a huge boost to the local — but still vital — infrastructure we all rely on. Our budget can only support communities with initiatives like these if we keep the fundamentals in good shape.
That’s what we will continue to do this year as we reap the rewards of a strong economy and much-needed infrastructure projects to improve the lives of people across NSW.
This won’t be without challenges.
The pressure on NSW government revenue continues to mount. Our state’s share of the national GST pool continues to shrink thanks to a broken GST distribution system that simply must be fixed by the Commonwealth.
The long-expected cooling in the property market may mean good news for those seeking to get in to the market, but it also means the decline in stamp duty revenue that we forecast in last year’s budget is materialising.
These are challenges, but they are good challenges for a treasurer to have. We will also continue to pursue new, bold reforms to boost economic momentum such as launching NSW’s first Productivity Commission.
Above all, this year’s Budget will continue the strong financial discipline that has been essential to our state’s economic resurgence and has put us in great shape to meet the mounting fiscal challenges.
It’s all about forging a future for NSW where there is more prosperity for all of us to share, and I’m excited for what our 2018-19 budget will do to keep our state moving confidently into the future.
Bring on June 19.
Dominic Perrottet is NSW Treasurer