Victoria has posted a $2.5bn deficit for the first quarter of the current financial year, meaning the state is already more than halfway to the $4bn deficit forecast in the May budget for the full 2023-24 financial year.
The state's quarterly financial report also shows net debt increased by $5.5bn in the September quarter, meaning that if Victoria continues to spend at the same rate for the rest of the financial year, net debt will hit $137.2bn by June 30 — $1.8bn worse than the $135.4bn predicted in the May budget.
Despite this, the report predicts net debt will actually be lower than previously forecast, reaching $133.8bn by June 30.
"Caution needs to be taken in interpreting and projecting the potential annual outcome for the full year from this quarterly result, due to the significant impact of the uneven recognition pattern of various major revenue items. These include land tax, the Fire Services Property Levy, Commonwealth grants and dividends and grants from public corporations," the report states.
The Allan government quietly tabled the report in state parliament on Friday afternoon in what appears to have been an attempt to avoid scrutiny.