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Clearly communicating and taking accountability for fiscal strategies is the first step towards ensuring public finances are fit for today and the future.
McKinnon advocates for jurisdictions to take a “Balanced Scorecard” approach to communicating fiscal strategies via Treasurers’ Fiscal Statements to have honest conversations about future fiscal challenges and improve understanding and engagement with government fiscal matters.
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We need a more long-term view to put public finances back on a sustainable trajectory
Currently there is a bias towards the short term in government spending decisions which has contributed to consolidated government debt levels rising over time. To enable governments to engage better with their citizens on the medium-term pressures and trade-offs in government spending we recommend the adoption of Treasurers’ Fiscal Statements. This new mechanism has the potential to create greater public awareness of and engagement with government spending to ensure Australia’s fiscal sustainability.
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