Daniel Andrews claims bushfires won’t put Budget in the red — despite mounting costs
While a summer of bushfires wreaked devastation across Victoria, Daniel Andrews has vowed mounting costs won’t tip the state’s Budget over — despite rumblings of financial unease from within his own party.
VIC News
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Premier Daniel Andrews has vowed the Victorian Budget will remain in the black this year, despite this summer’s bushfire crisis adding to mounting cost pressures.
It comes as public servants brace for job losses as the state government finalises a line-by-line review of taxpayer-funded spending in an effort to weed out waste.
There is a growing sense of unease among Labor MPs about the state’s finances, with cost overruns on major projects also fuelling negative forecasts.
The Sunday Herald Sun understands ministers are struggling to get approval for new spending in their portfolio areas as the Budget process ramps up.
But Mr Andrews last week ruled out a new levy or tax to pay for the bushfire recovery effort, and said the Budget would remain in surplus.
“It’s too early to say how the cost of these bushfires will be dealt with,” he said.
“We are about making sure that we stand with every community that’s been impacted, that’s why we run a surplus budget every single year.”
The government has rolled out a series of emergency assistance and rebuilding programs, although it is yet to reveal any major long-term spending, after the New South Wales government committed $1 billion over two years.
“We’ve already made some significant announcements and we’ll have more to say,” Mr Andrews said.
This year’s $1 billion surplus was crunched to $618 million in last month’s mid-year update, which Treasurer Tim Pallas blamed on softening national economic conditions.
A sweeping review of spending across government departments, due to wrap up soon, will be used to find $1.8 billion in savings across four years.
While Mr Pallas has said public service job cuts would be “a last resort”, the Sunday Herald Sun has been told the situation is “grim” across multiple departments.
Community and Public Sector Union state secretary Karen Batt called on the government to “come clean and be upfront about budget plans”.
“What I’m hearing deeply troubles me,” she said.
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“Agencies still don’t know what they’re going to receive and as a result are not filling funded vacancies, while keeping vital staff like child protection support in insecure casual employment.”
“It’s hurting services. It’s not how Labor should act.”
The government is also working on the structure of a new tax to bankroll mental health reforms from the royal commission. It needs to raise as much as $1 billion a year, with more details expected to be announced prior to the state Budget on May 5.