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Michael Read

How Victoria became one of the rich world’s most indebted states

Victoria is the fourth-most indebted advanced economy state government outside the US. It may soon find there’s a fine line between nation-building and overbuilding.

Michael ReadEconomics correspondent

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Victoria’s debt boom is a stark reminder that when it comes to spending, Australian states have few brakes and even fewer boundaries.

What has been missing from the recent debate about government spending is a recognition of how stark the deterioration in Australia’s state government finances has been on a global scale, and the institutional features that have given rise to the states’ era of profligacy.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/how-victoria-became-one-of-the-rich-world-s-most-indebted-states-20241202-p5kv2k