Budget update reveals shock amount Victorian debt is spiralling daily

Victorian debt is growing at almost $25m day more than the government forecast in this year’s budget, with a Friday update revealing it grew by more than $80m a day over the last financial quarter.

Premier Jacinta Allan has said the quarterly report does not reflect figures the government expects to see at the end of the financial year. Picture: Aaron Francis

Victorian debt is growing at almost $25m day more than the government forecast in this year’s budget.

A budget update published on Friday showed net debt grew by more than $80m a day over the last financial quarter.

May’s budget forecast debt to grow from $135.8bn to $156.2bn by 2025-26, a rate of $55.7m a day.

The current trajectory means current predictions, that debt will soar to $187.8bn by 2027-28, could blow out by billions of dollars.

Premier Jacinta Allan said the quarterly report did not reflect figures the government expected to see at the end of the financial year.

“The quarterly update is exactly that, it reports on the first quarter, it’s not the final financial report,” she said.

“We have outlined our strong fiscal strategy … and we are working with that strong fiscal strategy.

Premier Allan says Victoria is growing jobs. Picture: Nadir Kinani

“We continue to be a state that is creating jobs, growing jobs and growing the economy.”

While taxation revenue climbed by $716m from the same period last year, operating activities recorded a $1.9bn cash deficit, $600m more than last year.

The state’s liabilities also outpaced asset growth while net debt surged by $7.4bn, reaching $140.7bn.

It took interest repayments to $1.55bn, an increase of 81 per cent over the same period last year.

Shadow Treasurer, Brad Rowswell, blamed a decade of mismanagement by the Labor government for the debt blowout.

“It’s clearly not in Labor’s DNA to reduce the record debt they have ratcheted up over the last decade,” he said.

“The Allan Labor government simply does not respect hardworking Victorian taxpayers who continue to foot the bill for their financial incompetence.”