Key government agencies ‘starved’ of funds

The Andrews government has been accused of “starving” key integrity and accountability agencies of funds, blocking them from doing their work.

A key parliamentary office is being starved of funds despite warnings it can’t perform critical functions.

Victoria’s Parliamentary Budget Office last week published a bombshell report that accused the Andrews government of hiding the state’s true financial affairs from Victorians.

The Sunday Herald Sun can now reveal the state government has refused repeated requests to boost funding to the office amid concerns it’s work was being hampered.

Since its establishment in 2018 the PBO’s base budget has not increased beyond $3.3m a year.

And while it continues to operate within budget, it has been forced to slash staff numbers to do so.

In its most recent annual report the PBO warned it was being hampered by the effects of “reduced real funding”.

Both the Independent Broad-based Anti-corruption Commission and the Victorian Ombudsman have also highlighted the lack of resourcing for their organisations.

There are now concerns the PBO will be unable to prepare vital independent policy costings in the lead up to the 2022 election.

Despite a $900,000 funding boost in the 2021–22 state budget to meet election related costs, it is not due to hit the PBO’s coffers until 2022-23.

Concerns have also been raised about restrictive legislative framework which limits office’s work despite calls for the government to broaden its powers to bring it in line with its federal counterpart.

The PBO was set up to provide policy costing and advisory services to Victorian MPs.

But it must only act at the request of MPs and cannot initiate its own work.

“While in government Andrews and Labor have and continue to starve the independent Parliamentary Budget Office (PBO) of funds, starve it of information to do its job under the Act, and allow the public service to ignore without consequence its legal obligations to the Parliamentary Budget Office,” Shadow Treasurer, David Davis MP said.

“Andrews and Labor are starving Victoria’s integrity and accountability agencies for one reason only, so they are held less accountable for their appalling waste and mismanagement and badly needed inquiries like IBAC’s Operation Watts are few and far between.

“The arrogance and dismissiveness towards agencies meant to protect our democracy and public purse is simply breathtaking.”

In a report released last week the PBO accused the state government of hiding the state’s true financial plight.

In response Premier Daniel Andrews said he “may find time” to read the report.

“Andrews did not support the establishment of the PBO when in opposition,” Mr Davis said.

“Proof that nothing has changed can be seen by his recent dismissiveness and arrogance towards the PBO.”

The shock report, prompted by concerns by a number of MPs, is expected to spark calls for an overhaul of the way the government reports its financial position.

The report warned that as debt climbed, longer-run projections were vital to assessing the long-term fiscal implications of current policy and infrastructure decisions.

But it said the PBO was being hampered in doing its work because of constantly changing targets that made the state’s true financial position difficult to properly assess.

It also warned the current practice of 4-year forecasts was no longer sufficient.

Latest budget forecasts expected net debt to climb to a record high $156bn by 2024-25, or 20.3 per cent of the state’s economy, significantly higher than the government’s 12 per cent target.

A government spokesman said: “Victoria’s PBO has received more funding than other jurisdictions such as New South Wales and South Australia in their respective election years.

“We established the PBO and will continue to provide it with the appropriate resources required.”