The Government’s fiscal strategy is based on the following fiscal principles for the responsible and measured management of the state’s finances:
Principle 1: The Government will target ongoing reductions in Queensland’s relative debt burden, as measured by the General Government debt-to-revenue ratio.
Principle 2: The Government will target a net operating surplus that ensures any new capital investment is funded primarily through recurrent revenues rather than borrowing.
Principle 3: The General Government capital program will be managed to ensure a consistent flow of works to support jobs and the economy and reduce the risk of backlogs emerging.
Principle 4: Maintain competitive taxation by ensuring that General Government sector own-source revenue remains at or below 8.5% of nominal gross state product, on average, over the forward estimates.
Principle 5: Target full funding of long-term liabilities such as superannuation and WorkCover Queensland (WorkCover) in accordance with actuarial advice.
Principle6: Maintain a sustainable public service by ensuring overall growth in full-time equivalent employees, on average over the forward estimates, does not exceed population growth.
The Financial Accountability Act 2009 requires the Treasurer to table in the Legislative Assembly a Charter of Fiscal Responsibility containing the government’s fiscal strategy. The Treasurer must also report regularly on the government’s progress towards the charter’s outcomes.