Victorian Consolidated Legislation

Financial Management Act 1994 - SECT 23D

Principles of sound financial management

23D. Principles of sound financial management



(1) The principles of sound financial management are that the Government must-

   (a)  manage financial risks faced by the State prudently, having regard to
        economic circumstances;

   (b)  pursue spending and taxing policies that are consistent with a
        reasonable degree of stability and predictability in the level of the
        tax burden;

   (c)  maintain the integrity of the Victorian tax system;

   (d)  ensure that its policy decisions have regard to their financial
        effects on future generations;

   (e)  provide full, accurate and timely disclosure of financial information
        relating to the activities of the Government and its agencies.

(2) The financial risks referred to in subsection (1)(a) include-

   (a)  risks arising from the level of the State's general government sector
        debt;

   (b)  commercial risks arising from ownership of public non-financial
        corporations and public financial corporations;

   (c)  risks arising from changes in the structure of the Victorian tax base;

   (d)  risks arising from management of assets and liabilities of the State.

Division 3-Financial policy objectives and strategies statements