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<\/p>\nThe Victorian government has failed to meaningfully tackle soaring debt, instead continuing to focus on cost-of-living programs and service delivery with just over 200 days until the state election.<\/p>\n
The vast majority of new spending was already announced by the Allan government before today’s budget.<\/p>\n
State debt is now projected to hit $199.3 billion in 2029-30, with the state’s interest expense bill to be greater than $11 billion that year.<\/p>\n
The budget focuses on both Labor’s traditional strengths \u2014 health and education \u2014 while addressing community concerns over crime and crumbling roads.\u00a0<\/p>\n
Treasurer Jaclyn Symes described this year’s budget as “disciplined”, spruiking it as the first surplus delivered in seven years.\u00a0<\/p>\n
“You’ll see in the budget that we have continued to fund the frontline services,” Ms Symes said.<\/p>\n
“Wanting to make them bigger and expand them more \u2014 that’s where we’ve had to lighten off a bit.”<\/p>\n
Jaclyn Symes says Victoria is delivering the largest surplus of any Australian jurisdiction. (AAP Image: Joel Carrett)<\/p>\n
Ms Symes also took the opportunity to lash other states, saying the surplus was the only one delivered by a state on the east coast, and larger than the surplus delivered in South Australia.<\/p>\n
Victoria’s budget has been buoyed by an additional $4 billion in revenue than projected last year, with three-quarters of the boost stemming from grants from a generous federal government.<\/p>\n
But RMIT University professor David Hayward said given the extra unexpected revenue, the budget wasn’t nearly as disciplined as portrayed by the government.<\/p>\n
“When they get extra cash in they spend it,” he said.<\/p>\n
“Got an extra dollar? Give that to me. I’ll spend that on, in this case, health, education, transport and a little bit on community safety.”<\/p>\n
Business as usual budget as state election looms<\/p>\n
In the Allan government’s final budget before the state election in November, funding will go towards areas the opposition has attacked on the campaign trail.\u00a0<\/p>\n
Who are the winners and losers in Victoria’s budget?<\/a><\/p>\n Despite rising debt, the Victorian government’s found money for hip-pocket measures and a justice system overhaul. These are some of the winners and losers.<\/p>\n The budget has splashed cash in areas raised consistently as concerns by Victorian voters such as crime, roads and the cost of living.<\/p>\n The government has promised $137.7 million as part of a crime crackdown, including $62 million to recruit more administrative staff for police and $44 million for 50 more protective service officers on public transport.\u00a0<\/p>\n Nearly $40 million is being spent to target youth crime by establishing a violence reduction unit and a youth mentoring program, while nearly $3 million will be spent on reviewing sentencing laws.<\/p>\n The opposition has also taken aim at the government’s record on roads and potholes in social media stunts<\/a>.<\/p>\n The government will pour more than $1 billion into road repairs across the state, as well as a further $102.6 million to fund new projects and upgrade existing roads.<\/p>\n Millions will be invested to hire administrative staff to \u00a0perform clerical work and allow frontline police officers to leave the office.\u00a0 (ABC News: Stephanie Anderson)<\/p>\n Professor Hayward said the spending was to be expected given the state’s current place in its four-year political calendar.<\/p>\n “As we move into an election, you expect to see the money spent,” Professor Hayward said.<\/p>\n “They didn’t want to leave any of the chocolates, just in case there was a change of government.”The depths of the debt<\/p>\n Despite a promised $1.048 billion surplus in the budget, record levels of debt still loom over Victoria’s finances.\u00a0<\/p>\n Last year, the government projected interest payments on the state’s debt would soar to nearly $29 million a day by the 2028-29 financial year.<\/p>\n Fresh projections released in today’s budget show that figure will continue to balloon.<\/p>\n Interest payments on Victoria’s debt this year amount to $24.4 million a day, growing to $32.3 million a day by 2029-30.<\/p>\n The government projects it will also need to borrow a further $40 billion over the next four years.\u00a0<\/p>\n But Ms Symes would not answer whether Victoria had paid down any of the principal of its debt, saying the focus was on “stabilising” the debt before paying it down.<\/p>\n To make up for the increased pressure of the debt, the government is betting on its tax revenue growing in the coming years.\u00a0<\/p>\n Payroll tax, already the state’s biggest money spinner, will jump 15 per cent by 2029-30, as will the projected revenue from land taxes.<\/p>\n But the government’s optimistic outlook is coloured by a decrease in land transfer revenue this year.<\/p>\n It projects it will collect $600 million less in stamp duty in 2026-27, blaming high interest rates and a cooler property market for the dip.\u00a0<\/p>\n It means government projections that land transfer duty revenue will grow 7.5 per cent a year will be contingent on the property market heating back up.<\/p>\n “We have downgraded our expectations in taxation revenue in relation to the property sector,” Ms Symes said.<\/p>\n The education (and health) state<\/p>\n The Allan government has announced several measures to address cost-of-living pressures, including free public transport across the state<\/a> for two months and discounted car registration<\/a>.<\/p>\n The free public transport initiative over April and May will cost Victorians $432.5 million, split over the next two years, while the discount to car registration will cost $756.5 million this year.<\/p>\n The government’s budget paints a rosy picture for the financial climate, despite the latest national figures coming in much hotter.\u00a0<\/p>\n The Department of Treasury and Finance forecasts the Melbourne consumer price index, which measures inflation, to come in at 3.5 per cent in 2026-27, before dipping to 2.75 per cent the following year.<\/p>\n However, the latest national figures from the Australian Bureau of Statistics show inflation rose 4.6 per cent in the 12 months to March 2026 due to increased fuel costs.<\/p>\n More than $400 million will be spent on providing free public transport across Victoria. (ABC News)<\/p>\n Victoria’s two biggest sectors in terms of government spending remain health and education, making up about 54 per cent of expenses.\u00a0<\/p>\n A huge investment is being made into disability inclusion in schools, giving every public school in the state access to funding for hiring specialist staff and improving accessibility.\u00a0<\/p>\n The government has poured $2.2 billion in funding over four years into the reforms, eating up nearly 37 per cent of its total education funding in 2026-27.<\/p>\n![\"Police](\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/05\/d83b6a7a920cf13a7712385df00e13e2.jpeg\")
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