Independent economist Saul Eslake has put Victoria’s finances under the spotlight with an in-depth audit of the state, but Treasurer Tim Pallas has hit back, lashing out at what he described as “nonsense” bashing of the state.

Eslake found that household income in Victoria had fallen behind Tasmania for the first time. Pallas says the state is performing “exceptionally well” in difficult circumstances. The pair have agreed to a debate.