Finance 1989-90: The Treasurer's Statement for the year ended 30 June 1990 and the Report of the Auditor-General
Overview
The estimated indebtedness of the budget sector at 30 June 1990 amounted to $32.6 billion, with associated finance costs for the year of $1.5 billion. During 1989–90, the Government continued with an asset sales program which over the last 3 years has raised $604 million. To date, the proceeds of these sales have not been used to retire debt. The report indicates that, over the last decade, continuing and increasing deficits have been incurred by the State's budget sector which have been funded by borrowings. Although the majority of borrowings have resulted in the State acquiring assets, these have generally not been income-producing but rather infrastructure assets such as roads, hospitals and schools. As deficits have accumulated, the State's capacity to fund its expenditure programs has deteriorated, with a greater proportion of revenue being absorbed by finance charges. This places an ever increasing burden on both present and future taxpayers. The Treasurer announces that the primary focus of the 1990–91 Budget is to be debt management, and the strategy to address the budget sector's debt burden is announced in this report. This report contains the matters of special interest, which sets out a number of issues regarded by audit as important for improving the financial operations and accountability of State Government organisations.