Good management reduces the Government’s debt burden
The Government remains committed to maintaining low levels of net debt into the future. Australia has a much lower level of government net debt than most other industrialised countries, including high-performing economies such as Canada and New Zealand. Our net debt to GDP ratio is among the lowest in the OECD.
While net debt in many OECD countries is rising as a percentage of GDP, Australia’s net debt continues to fall. This places Australia in a much better position than most countries in terms of its ability to respond to economic shocks and emerging medium-term pressures.
Having paid off the debt run up by the previous government, we now can look to invest for the future. This is possible because lower debt means lower net interest payments, generating substantial savings that can be directed to other purposes.
Sound fiscal management means a reduced government debt burden
Australia is a world leader in reducing total general government net debt
7 2005-06 Budget Overview