Treasury applies a number of strategies to ensure State financial and economic management outcomes.
The State Fiscal Strategy is the key component of the NSW Treasury’s strategic management framework to ensure the strength of NSW's financial position. The Fiscal Strategy is guided by the Fiscal Responsibility Act 2012, which has as its key objective maintaining the State's triple-A credit rating. The Act sets two targets (requiring expenditure growth to be kept below long-run revenue growth; and eliminating the State's net unfunded superannuation liabilities by 2030). The Act also requires adherence to three principles of sound public sector management (responsible and sustainable spending, taxation and infrastructure investment; effective financial and asset management; and achieving intergenerational equity). It imposes several budget reporting requirements, including an annual Fiscal Strategy Statement.
The implementation of a financial management framework and its various elements is the major mechanism to improve the outcomes for the community from Government programme and service delivery.
Strengthening the commercial policy framework that applies to Government businesses maximises the value of these businesses, and ensures an appropriate return on the Government's investment in them. It is a key strategy to strengthen the State's finances.
Treasury's microeconomic reform strategy aims at productivity improvement not only within government, but also the broader economy. The former is pursued by periodic review of service delivery and associated funding for key sectors. Implementation of the National Reform Agenda including competition policy contributes to the latter.
State balance sheet management aims to ensure an optimal State's balance sheet structure that will allow the State to maintain the level of services throughout economic cycles. Effective application of the fiscal strategy will enhance the achievement of this objective.
Our organisation development focuses on the skills of our people and their ability to work together as a team and in partnership with other agencies. This strategy underpins the other elements of Treasury's Strategic Management Framework