The Victorian government’s debt pile in 2026 will be $5 billion greater than forecast two years ago when then-treasurer Tim Pallas slapped businesses and investors with higher taxes to repay emergency funds borrowed at the height of the COVID-19 pandemic.
Budget papers show Victoria’s net debt will grow to $167.6 billion in the next financial year, despite a “COVID debt repayment plan” unveiled two years ago that forecast debt would climb to $162 billion in 2025-26, and Pallas declared the government had to bring the balance of emergency borrowings down to zero.
