Victoria’s latest budget has been handed down ahead of the state election, with the Allan government leaning heavily on cost-of-living relief and service delivery while questions persist over rising debt.
State debt is forecast to reach $199.3 billion by 2029–30, with annual interest repayments projected to climb above $11 billion, even as the budget delivers a forecast surplus of $1.048 billion.
Much of the new spending had already been announced, with Treasurer Jaclyn Symes describing the plan as “disciplined” and the first surplus delivered in seven years.
“You’ll see in the budget that we have continued to fund the frontline services,” she said. “Wanting to make them bigger and expand them more — that’s where we’ve had to lighten off a bit.”
The government has highlighted extra revenue of $4 billion, largely driven by federal grants, but critics argue spending remains reactive.
RMIT University’s Professor David Hayward said, “When they get extra cash in they spend it.” He added, “Got an extra dollar? Give that to me. I’ll spend that on, in this case, health, education, transport and a little bit on community safety.”
Key budget commitments include more than $1 billion for road repairs and over $100 million for new road projects, alongside a $137.7 million crime package covering police support staff, protective services officers, youth crime prevention and sentencing law reviews.
Health and education remain dominant, accounting for around 54 per cent of spending. Major allocations include $2.2 billion for disability inclusion in schools, $222 million to rebuild the Victorian Curriculum and Assessment Authority, and $1 billion for health services, including additional ambulance funding.
Cost-of-living measures feature heavily, with $432.5 million allocated to free public transport for two months and $756.5 million for reduced car registration fees.
However, weaker property-related revenue and rising debt servicing costs continue to weigh on the state’s long-term fiscal outlook, with borrowing expected to increase by a further $40 billion over the next four years.
Source: ABC News
