Arts and community sport in firing line as horror State Budget looms

Arts and sporting groups are in the firing line as Victoria braces for another horror state budget, with the state’s gross debt estimated to hit nearly $250bn by 2027.

Community sport and performing arts are in the firing line as another horror state budget looms.

The arts and grassroots sporting groups are facing major funding cuts in what is being described as a second consecutive horror state budget.

As the government struggles to rein in spiralling debt — with latest estimates warning gross debt will hit almost $250bn by 2027 — the Herald Sun can reveal wide scale funding cuts are being mooted that would critically impact arts and sporting groups.

Massive funding cuts are predicted to hit performing arts and community sport in the upcoming budget. Picture: NCA NewsWire / Ian Currie

Government agencies could also bear the brunt of the “slash and burn” budget, while departments have been warned “there is no money in the cupboard”.

Senior government sources said there was frustration that last year’s budget failed to take the hard decisions needed to restore Victoria’s economy.

They said numerous recommendations from treasury officials about cutting spending were ignored by former Premier Daniel Andrews’ private office.

It meant this year’s state budget was shaping up to be worse than it otherwise needed to be.

“The work wasn’t done last year and the tough decisions weren’t made so this year is going to be very bad,” one source said.

Department heads have been warned the May 7 budget will deliver the bare essentials, with little money for new or improved services.

On Friday global ratings agency S&P warned Victoria’s gross debt was on track to reach $247.2 billion by 2027.

It would translate to a daily interest bill of almost $40m.

Local sporting groups are expected to be hit hard by the May 7 budget Picture: Alan Barber

While treasurer Tim Pallas has refused to rule out changes to the existing tax regime, senior government sources said new taxes would likely not be the focus of the budget.

Parliamentary Budget Office data shows Victoria is already the highest-taxed state in the nation.

It shows that in 2023-24, the state government will collect an average of $5074 in state taxes per person.

That compares with $4707 in NSW, $3647 in Queensland, $2970 in South Australia and $2900 in Tasmania.

Instead major spending cuts will loom large.

Shadow treasurer Brad Rowswell, said Victorians were paying the price for nine years of Labor’s economic mismanagement.

“12 months on from imposing new taxes on rents, jobs and schools, Victorians are bracing for yet another horror budget that will make life even harder,” he said.

“Labor simply cannot manage money and every Victorian is paying the price.

“Instead of making Victorians pay for their own waste and mismanagement, the Allan Government must deliver cost-of-living relief and rule out new or increased taxes in this upcoming budget.”

A state government spokesman said the budget will be handed down on 7 May.

“Global economic circumstances mean governments around the world are continuing to fight the aftermath of Covid and the rise in inflation.

“We will continue to deliver the promises we made at the last election and protect the jobs and services that Victorian families rely on.”