Victorian Premier Daniel Andrews is in talks with Prime Minister Anthony Albanese on the need for federal help in the May 9 budget, as the financial hangover from the world’s longest lockdown bites and the state’s growing $115 billion debt threatens thousands of jobs across the public sector.

Ratings agencies will closely watch Victoria’s May 23 state budget – which has the lowest rating of the states after a double-notch downgrade during the pandemic in December 2020 – with the state’s net debt expected to grow from $115 billion to more than $165 billion by 2025-26. The interest expense on the debt is expected to increase to $7.32 billion by 2026.