Labor Releases a Plan for Spending – Not a Fiscal Strategy

Labor’s fiscal strategy has failed at the first hurdle, it appears to be in breach of the Charter of Budget Responsibility Act and even more significantly it doesn’t add up.

Labor promises surpluses of 2%, which is completely unachievable given their reckless spend-a-thon. Labor has promised over $2 billion in new spending, more than twice the Liberals’ promise.

The Charter of Budget Responsibility Act* requires the fiscal strategy to be based on legislatively specified principles of sound fiscal management, as well as addressing the required contents of a fiscal strategy statement.

Labor’s document fails to do this.

Given they have failed to provide the details required by the Act and have not had any of their policies costed by Treasury, it is clear Labor can’t be trusted with money.

The contrast between Labor and the Liberal party could not be more stark, and there’s too much at stake to risk Labor’s unaffordable and unbelievable election promises.

Only a majority Gutwein Liberal Government has a clear, long-term plan to Secure Tasmania’s Future based on a clear fiscal strategy that meets the requirements of the Act, as well as the responsible budget discipline and track record to do it.

That’s why Tasmanians have a clear choice on 1 May and who sits in the Premier’s chair. A majority Liberal Government with a strong track record of responsible budget management and results, or a minority Labor-Green rabble with a history of debt, deficit and failure.

*Relevant sections from the Charter of Budget Responsibility Act
3. The principles of sound fiscal management
The principles of sound fiscal management are to –
(a) manage the State's finances responsibly for the wellbeing of all Tasmanians; and
(b) provide for the future for the next generation of Tasmanians; and
(c) prepare for unexpected events by building a robust financial position; and
(d) improve services to Tasmanians by building a strong economy and efficiently allocating public resources to gain the maximum community benefit; and
(e) formulate spending and taxation policies that ensure a reasonable degree of equity, stability and predictability; and
(f) ensure transparency and accountability in developing, implementing and reporting on fiscal objectives.
8. Contents of a fiscal strategy statement
(1) A fiscal strategy statement is to –
(a) specify the long-term objectives within which budgets will be framed; and
(b) specify the key fiscal measures against which fiscal policy will be set and assessed; and
(c) specify the fiscal objectives and targets for the budget year and the following 3 financial years; and
(d) identify how the fiscal objectives and strategic priorities relate to the principles of sound fiscal management