Original article by Michael Roddan
The Australian – Page: 1 & 6 : 19-Jun-19
The combined net debt of Australia’s state and territory governments is set to exceed $184bn over the next four years, compared with just $81bn in 2018-19. Increased investment in infrastructure will be a key contributor to the debt blowout, and Robert Carling of the Centre for Independent Studies stresses the need for such projects to be subject to a cost-benefit analysis. He adds that New South Wales and Victoria could potentially be at risk of losing their AAA credit ratings if their net debt continues to rise, although he says this is unlikely in the near-term.
THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIAN LABOR PARTY, MOODY’S INVESTORS SERVICE INCORPORATED, DELOITTE ACCESS ECONOMICS PTY LTD, NEW SOUTH WALES. THE TREASURY, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE