Unreported data confirms that state governments are passing up the opportunity to invest in the future. There’s never been a better time to change direction

Never have our governments been able to borrow money more cheaply. If we fear that our economy might underperform, or if we think we need to accelerate productivity growth by tackling the congestion choking our big cities, it has never made more sense for us to borrow and build.

So what are our state governments doing? New South Wales and Victoria, both AAA-rated and faced with mounting road and rail congestion, are giving priority to paying back debt.

Previously unreported data from the Australian Bureau of Statistics reveals that in the nine months to March, New South Wales, Victoria and Tasmania all repaid more money to the financial markets than they borrowed. At a time when it has never made more sense for them to take on debt, they chose to reduce it…

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