Ratings agency S&P has urged the Allan Labor Government to rein in its unsustainable debt, which is set to reach a projected $177.8 billion by mid-2027.
Less than three weeks out from the Victorian State Budget, S&P’s agency director Anthony Walker said, “since the pandemic, the Government’s been funding its operating position, which includes nurses, teachers and doctors, through debt.”
This unsustainable spending is helping drive inflation and is pushing up prices of goods and services for Victorians, while the interest payments on Labor’s debt alone will soon reach $24 million each and every day.
Shadow Treasurer, Brad Rowswell said: “Labor’s debt is fiscally irresponsible and economically unsustainable. This is what happens when governments don’t provide good economic management.
“After introducing or increasing 53 taxes and charges since coming to office, Labor will now have to make cuts to health, education, infrastructure and transport services, or raise taxes further.
“As S&P have today warned, Treasurer Pallas needs to stop paying for nurses, teachers and doctors with the state’s already maxed out credit card.”
