Victorians continues to pay the price for the Allan Labor Government’s financial mismanagement as a new report reveals the worsening state of Victoria’s economy.
Today’s Auditor-General’s Annual Financial Report of the State of Victoria: 2023–24 has confirmed across the last financial year:
- The Victorian General Government Sector (GGS) suffered an operating loss of $4.2 billion.
- GGS debt rose faster than revenue and economic growth and is projected to reach $228.2 billion by June 2028.
- Only 18.7 per cent of Victoria’s current debt is linked to COVID-19 expenditure.
- The Allan Labor Government has no specific and measurable target for stabilising interest repayments, which are expected to reach 8.8 per cent of operating revenue by 2027-28.
- Re-financing of maturing debt at higher interest rates presents a “significant financial sustainability challenge”.
- The Allan Labor Government has rejected a recommendation to improve financial transparency by reforming annual report “dump day”.
The report comes as, under the Allan Labor Government, Victoria continues to have the highest unemployment, highest property taxes and highest debt in the nation.
The Auditor-General was also critical of Assistant Treasurer, Danny Pearson’s failure to provide an explanation for the delayed tabling of 131 public body annual reports, as required under the Financial Management Act.
Shadow Treasurer, Brad Rowswell, said: “This report confirms the challenges facing Victoria’s economy are immense and growing.
“Under Labor, debt is growing by $80 million a day, operating deficits are set to continue for years to come and growing interest repayments are draining vital funds from frontline services.
“Labor cannot manage money, cannot manage our economy and Victorians are paying the price.”
Shadow Minister for Finance, Jess Wilson, said: “Victoria’s financial position is rapidly deteriorating under the Allan Labor Government.
“Following a decade of mismanagement, in only a few years’ time, the best part of one out of every ten dollars raised by taxpayers will be spent servicing Labor’s record debt.
“Labor has no plan to undo the damage they have caused, continuing down a path of reckless spending that will only fuel higher taxes and more debt.”
