Economists warn that a $1 billion deterioration in Victoria’s forecast budget position in six months, even after a $3.7 billion GST windfall, shows that big spending handouts to families, farmers and seniors will fuel inflation and risk the state’s credit rating.
Victorian Treasurer Jaclyn Symes revealed on Monday she had used a $3.7 billion GST windfall to fund more cost-of-living relief, instead of banking it to repair the state budget.
Patrick Durkin is Melbourne bureau chief and BOSS deputy editor. He writes on news, business and leadership. Connect with Patrick on Twitter. Email Patrick at pdurkin@afr.com