The Minns Labor Government will slash gross debt by more than $7 billion by suspending contributions to the NSW Generations Fund (NGF) this year, ahead of a major shakeup of the state\u2019s fund management policies.<\/p>\n\n\n\n
The new settings will be the largest single gross debt reduction measure proposed in the upcoming 2023-24 Budget. Interest payments are likely to fall by $1.1 billion over the forward estimates. <\/p>\n\n\n\n
The government is reviewing the way in which NSW\u2019s investment funds are managed. This includes ending the previous government\u2019s policy of using $25.3 billion of borrowed money to invest in international stock markets, bond markets and other financial assets.<\/p>\n\n\n\n
It also means investigating more efficient management of the state\u2019s other funds.<\/p>\n\n\n\n
This second step will involve overhauling management of the state\u2019s funds under management, totalling $108 billion. The government will task T-Corp with developing a reform to maximise NSW\u2019s investment returns by initially consolidating 6 separate government funds, of around $43 billion, into a more cost-effective structure. <\/p>\n\n\n\n
The government\u2019s new funds management strategy will be implemented in next year\u2019s budget. This will assist the government in managing the impact of the new NGF settings on the state\u2019s finances. <\/p>\n\n\n\n
The upcoming budget will also provide a more transparent picture of the state\u2019s finances by providing further information about the budget result, excluding net investment returns from the NSW Generations Fund. <\/p>\n\n\n\n
The Minns Government\u2019s new policy will begin to unwind the previous government\u2019s risky practice of taking on more debt to repay debt. It also responds to the recent Upper House inquiry, which called for an overhaul of NGF policy settings.<\/p>\n\n\n\n
Treasurer Daniel Mookhey said: <\/strong><\/p>\n\n\n\n \u201cNSW is going to stop playing around in financial markets using its credit card. <\/p>\n\n\n\n \u201cThe previous government was willing to risk $25.3 billion to improve the state\u2019s net debt position by just $2 billion. I\u2019m not.\u201d<\/p>\n\n\n\n \u201cThis will be the biggest step we take to reduce the state\u2019s gross debt in this year\u2019s budget. It shows the government is carefully repairing the budget so we can fix NSW\u2019s essential services. <\/p>\n\n\n\n \u201cReforming the NGF will allow us to shake up how the state\u2019s investment funds are managed. That is a reform opportunity we intend to take.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" The Minns Labor Government will slash gross debt by more than $7 billion by suspending contributions to the NSW Generations Fund (NGF) this year, ahead of a major shakeup of the state\u2019s fund management policies. The new settings will be the largest single gross debt reduction measure proposed in the upcoming 2023-24 Budget. Interest payments … Continue reading “NSW Debt Retirement Fund overhaul”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-22759","post","type-post","status-publish","format-standard","hentry","category-nswnews"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/22759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=22759"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/22759\/revisions"}],"predecessor-version":[{"id":22760,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/22759\/revisions\/22760"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=22759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=22759"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=22759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}