Financial management of Dan Andrews, Jacinta Allan and Tim Pallas slammed by auditor general Andrew Greaves

Former Victorian premier Dan Andrews. Picture: Luis Enrique Ascui

This is an ugly (really ugly) set of numbers.

Victoria’s gross state debt will soar to $228bn by June 2028. In 2014, when the ruthless and reckless spender Daniel Andrews was elected, the equivalent figure was $33bn. Currently it is $168bn.

Victoria’s general government sector racked up a net operating loss of $4.2bn this year which brings the accumulated losses to almost $50bn over the past five years.

But as bad as these numbers are in Auditor General Andrew Greaves annual report card on the state’s finances, they are not the most concerning thing revealed on Friday by the watchdog.

No, to find the even more alarming bit about Victoria’s financial future you have to read Mr Greaves’ associated commentary which represents a devastating verdict on a decade of Labor rule.

“While strategies and objectives are in place, the state has not articulated a clear plan for long-term fiscal management,” he states.

“Current strategies are short term, reactive and do not address both the existing financial challenges and emerging financial risks ... a more comprehensive approach is needed to ensure long-term fiscal sustainability and proactive management of the state’s finances.”

Treasurer Tim Pallas. Picture: Asanka Ratnayake/Getty Images

So basically, after being in office a few weeks short of ten years, the chief financial watchdog has determined the Andrews-Allan-Pallas governments have no financial plan.

Mr Greaves reminds Labor of the need for this; “Developing a well-defined, long-term plan will provide a clear framework for which government decision-making can be anchored to ensure the allocation of public resources are prioritised not only based on policy intent but align with the financial and economic strategies and constraints to maintain financial health.”

Labor is keen to blame Covid expenditure for much of its financial woes, and while that did account for some of the increased debt, the reality is Andrews had embarked on a debt binge well before the pandemic.

Many of the billions have been blown on cost blowouts on the level crossings and tunnels that will reshape Melbourne. Now, this may be intergenerational infrastructure, but it has come at a crippling cost because Labor didn’t care about the cost. Spend, spend, spend. Stick it on the credit card. And tax, tax, tax to help pay it off. That’s been Labor’s mantra.

As Mr Greaves states:

“Victorian state debt is historically high and expected to grow as the government continues to borrow to fund its significant planned infrastructure program.

“The growth in debt was in part used to fund the state’s operating deficit in response to the COVID-19 pandemic, and in part to fund planned infrastructure programs and unplanned cost overruns of existing infrastructure projects.

“A higher and unsustainable level of public debt can pose a significant risk to future prosperity and economic stability. If not managed in a fiscally sustainable and responsible manner, debt imposes a direct cost on taxpayers both now and in the future.”

Premier Jacinta Allan. Picture: Nadir Kinani

Daniel Andrews is the chief architect of this disaster. Jacinta Allan, as his deputy premier and successor, must also wear much of the blame. But someone else is also guilty; his name is Tim Pallas, who has been treasurer for Labor’s decade in office.

Good governments need strong treasurers. Someone with the strength of character to stand up to prime ministers or premiers. The Pallas-Andrews dynamic was more akin to that of a

staffer to a minister. Unfortunately for Victorians, this meant Pallas has been more of an enabler rather than a hand brake on spending. And for this, Pallas should be condemned.