Treasurer: ‘There will have to be hard decisions in this budget’. See list of programs with funding at risk

Hundreds of programs worth a combined $23bn — across sectors including education, trades and transport — face funding cuts and the axe, in the Victorian government’s looming “horror” budget.

Hundreds of government programs worth a combined $23bn face the axe in next month’s state budget as the Allan government looks to rein in spending.

Independent analysis by the Parliamentary Budget Office has identified 321 programs that have not been guaranteed funding beyond June 30.

The programs, which cost the government $5.6bn in the last financial year alone, run across all government departments including health and education.

They include funding for school upgrades, apprenticeships, environmental programs, and transport initiatives.

Together they have cost the government an estimated $23bn since 2020-21 and would need to secure ongoing funding in this year’s budget.

Apprenticeships are among programs that could be in the government’s gun.

Transport programs also face funding cuts. Picture: AAP

Programs that face being axed without further funding include the $322m reforming care services initiative, a $20m specialist teachers program, and court therapeutic service programs.

The Herald Sun revealed last month that arts and grassroots sporting groups were facing major funding cuts in what in the anticipated horror budget.

But senior government sources said wider cutbacks should be expected across all government departments.

It could include savage funding cuts to government agencies that could bear the brunt of the “slash and burn” budget.

Ministers have been put on notice to strip spending and department heads have been warned there is “no money in the cupboard”.

There are concerns the Allan government will be forced to delay some 2022 election commitments and projects in an effort to stem the fiscal damage.

Treasurer Tim Pallas has repeatedly refused to rule out new or increased taxes but has said households wouldn’t bear the impact of the budget.

Victorian Treasurer Tim Pallas. Picture: Luis Enrique Ascui

Instead, he has confirmed major spending cuts as the government works to wind back growing debt levels — currently on track to hit $178bn by 2027.

“The way we will manage that is effectively by running a more efficient government and that will come at some level of challenge for existing expenditure right across government agencies,” Mr Pallas said this week.

“There will have to be hard decisions in this budget, and there will be,” he said.

“I’m not going to amplify the challenges that I have managing our budgetary and our fiscal position by amplifying them onto households.”

Credit agencies have flagged they will be watching the May 7 budget closely, and warned that Victoria faces further downward pressure.

Shadow Treasurer, Brad Rowswell, said Labor’s poor economic management had threatened a range of vital government programs.

“Labor cannot manage money and Victorians are paying the price,” he said.

“With debt at record highs and programs across education, employment, disability support and housing on the chopping block, it’s clear Victorians are facing a budget of service cuts and higher taxes.

“Victorians deserve certainty and Premier Jacinta Allan and Treasurer Tim Pallas must today confirm what frontline programs will be cut in their upcoming budget.”

Allan gov’t bats away concerns over failed school promises

The Allan government has batted away concerns that millions of dollars of upgrades to primary and secondary schools will not be delivered, claiming “every single one” of their election commitments will be honoured by 2026.

In the lead up to the 2022 election, the state government pledged $850 million to upgrade 89 primary and secondary schools.

In last year’s budget, $24 million was provided for “planning” upgrades to 54 schools.

Despite upgrades already being underway, some principals have reported receiving calls from the education department warning them to halt projects before the upcoming budget – prompting fears that funding could be slashed.

Education Minister Ben Carroll on Saturday refused to confirm whether the additional funding would be delivered when the budget lands on May 7, but claimed “all” commitments would be “honoured” before the next election in 2026.

“I can confirm all of our election commitments that we made at the last election will be delivered this term of government,” he said.

He also refused to confirm whether education funding would be reallocated.

Opposition spokeswoman for education Jess Wilson on Saturday called on the government to “fully allocate the funding for the commitments in the May Budget”.

It comes after teachers revealed details of school grounds being plagued by feral cats, rats, rust and leaking asbestos roofs in submissions to a state government inquiry into public education last month.