The five main reasons Victoria is in this financial mess

Victoria has been the lowest-taxing, lowest-spending mainland state over the past 25 years, a new analysis shows. Its bottom line is still a disaster, but it’s not all self-inflicted.

This analysis may appear to contradict the recent audit by veteran budget watcher Saul Eslake but it does not. AFR

Ivor Ries

Dec 11, 2024 – 5.00am

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The state of Victoria is drifting towards an economic and financial brick wall.

As prominent economist Saul Eslake chronicled in The Australian Financial Review last month, Victoria’s per capita household incomes are now below those of Tasmania, labour productivity has fallen behind the rest of Australia, and state government debt is ballooning to unsustainable levels.