The Allan Labor Government’s budget is set to deteriorate even further as the Metro Tunnel suffers a further almost billion-dollar cost blowout.
Less than five months on from the 2024-25 State Budget, the Allan Labor Government continues to suffer cost escalations across major projects, public sector wages and healthcare services, casting serious doubt over the accuracy of the budget’s operating position and net debt projections.
Furthermore, this latest cost blowout will place Victoria’s already worst-in-the-nation credit rating under further downgrade pressure.
After a decade of financial mismanagement under Labor, major projects have blown out by more than $41 billion – driving debt to record highs with interest repayments expected to reach more than one million dollars an hour by 2028.
Shadow Treasurer, Brad Rowswell, said: “The Allan Labor Government must be upfront with Victorians and explain how this latest billion-dollar blowout will be paid for.
“Victorians deserve to know – will Labor cut services, tax Victorians more or further add to Victoria’s record debt?
“In a matter of months, Labor’s budget mismanagement has cast serious doubt over the accuracy of the State Budget. As a matter of urgency, the Allan Labor Government must publish a budget update.
“Labor cannot manage money, cannot manage major projects and Victorians are paying the price.”
