GOVERNMENT SPENDING POLICY – VICTORIA

Victoria’s public service wage bill to hit $45.5bn despite job cuts

roymorgansocial Leave a comment

Original article by Damon Johnston, Anthony Galloway, Lily McCaffrey
The Australian – Page: 4 : 6-May-26

The Victorian government’s budget papers show that the state’s public sector wages bill is forecast to rise from $40.3bn in the current financial year to $41.1bn in 2026-27. Employee expenses are expected to keep rising over the forward estimates period, reaching $45.5bn by 2030. This is despite the government’s public service job cuts in response to a review by former bureaucrat Helen Silver; the job cuts are estimated to have contributed to government savings of about $4bn. Treasurer Jaclyn Symes says the government had been reducing non-frontline workers across the public sector, but she stresses that it is continuing to invest in essential workers such as teachers, nurses and police officers.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE

Victoria’s $199bn debt bomb explosion

roymorgansocial Leave a comment

Original article by Anthony Galloway, Damon Johnston, Lily McCaffrey
The Australian – Page: 1 & 4 : 6-May-26

The Victorian government’s budget papers show that an operating surplus of $727m is expected for 2025-26. This will rise to $1bn in 2026-27, well below the forecast of $1.9bn in the mid-year budget in December. However, the 2026-27 cash deficit – which takes into account expenditure such as infrastructure projects – is slated to be $7.7bn, although the previous forecast was $9.7bn. Meanwhile, yesterday’s state includes $13.8bn worth of new spending, while net debt is forecast to reach $199.3bn in 2030. Interest payments on this debt are expected to rise from $6.8bn in 2024-25 to $11.8bn by 2029-30.

CORPORATES

Allan handouts put Vic credit rating at risk

roymorgansocial Leave a comment

Original article by Patrick Durkin
The Australian Financial Review – Page: 3 : 21-Apr-26

Victoria’s Premier Jacinta Allan has defended the state government’s decision to extend cost-of-living relief for public transport users. Allan says the government’s strong budget position means it can afford to extend the fare-free period until the end of May, followed by half-price fares for the rest of the year. However, S&P Global Ratings analyst Martin Foo says policies that were initially meant to be temporary can be hard to unwind, and could potentially jeopardise the state’s credit rating.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET, S&P GLOBAL RATINGS

Allan denies firefighting funding cuts

roymorgansocial Leave a comment

Original article by Anthony Galloway, Liam Mendes
The Australian – Page: 7 : 13-Jan-26

Victoria’s Opposition claims that the state government has cut funding to the Country Fire Authority, with the CFA’s most recent annual report being cited as evidence. It shows that government grant funding fell from $351.6m to $339.5m over the four years to 2023-24, with the CFA’s 2024-25 annual report not yet released. With Premier Jacinta Allan rejecting the opposition’s claims, the row over funding comes as CFA volunteers fighting the state’s current bushfires have claimed that they are being expected to do so in ageing trucks with no air-conditioning in temperatures of up to 40C. About 27 fires were still burning across Victoria on Monday.

CORPORATES
VICTORIA. COUNTRY FIRE AUTHORITY, VICTORIA. DEPT OF PREMIER AND CABINET

Victorian Labor enters debt-and-tax spiral

roymorgansocial Leave a comment

Original article by Lily McCaffrey, Damon Johnston
The Australian – Page: 1 & 6 : 21-May-25

S&P Global analyst Rebecca Hrvatin has responded to the Victorian government’s 2025 budget by emphasising the need for fiscal discipline, particularly in the lead-up to the state election in November 2026. The budget papers show that Victoria’s net debt is forecast to rise from about $155bn at present to $194bn in 2028-29, while the state’s annual interest bill will top $10.5bn by that date. The state’s wages bill is in turn expected to blow out to $42bn in 2028-29, despite plans to shed about 1,200 full-time equivalent public sector jobs. Meanwhile, tax revenue is expected to rise to about $48bn in 2028-29, compared with $36.8bn in 2023-24; this is despite the absence of any new taxes in the budget.

CORPORATES
S&P GLOBAL RATINGS

No cost-benefit analysis done for $2b in legacy Games projects

roymorgansocial Leave a comment

Original article by Rachel Eddie
The Age – Page: Online : 26-Jul-23

The Victorian government is under scrutiny over its plans to proceed with $2bn worth of Commonwealth Games-related infrastructure in regional areas. Premier Daniel Andrews has admitted that the government has not done a cost-benefit analysis of the expenditure on new social and affordable housing and upgraded sports facilities in regions that were to have hosted Games events. He contends that such an analysis is not necessary, as it is "common sense" that an increase in affordable housing is needed in regional Victoria. National Party senator Bridget McKenzie says she is shocked but not surprised that the state government has not undertaken a cost-benefit analysis, adding that the $2bn investment will not be sufficient to address problems in regional Victoria.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET, NATIONAL PARTY OF AUSTRALIA

$32bn debt binge funds pledges

roymorgansocial Leave a comment

Original article by Rebecca Urban
The Australian – Page: 6 : 28-May-19

The Victorian Government’s May 2019 Budget has forecast a surplus of $1bn in 2019-20, rising to $1.5bn in the following financial year. State debt is projected to rise by $32.1bn over the forward estimates period, topping $54.9bn in 2022-23. The increased debt will be used to finance infrastructure projects, with expenditure on infrastructure to average $13.4bn a year over the forward estimates. Meanwhile, the government has scaled back its forecasts for growth in employment and gross state product over the next three years.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Debt to double to $60 billion as Labor drops cap

roymorgansocial Leave a comment

Original article by Patrick Durkin
The Australian Financial Review – Page: 9 : 23-Nov-18

The Victorian Government’s election costings show that the state’s debt ceiling will blow out to 12 per cent of gross state product as a result of its infrastructure spending program, which will be partially funded via debt. Treasurer Tim Pallas had previously sought to cap state debt at around $30bn, or less than six per cent of gross state product. Labor has also advised that the state’s Budget surplus for 2019-20 is projected to be $1.7bn, compared with expectations of a $2.3bn surplus in 2018-19. The Coalition intends to retain the existing debt ceiling and will seek to reduce the state’s debt by $1.1bn over four years if it wins the state election.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, NATIONAL PARTY OF AUSTRALIA, VICTORIA. DEPT OF TREASURY AND FINANCE, MELBOURNE WATER CORPORATION

State embarks on a dazzling spending binge

roymorgansocial Leave a comment

Original article by Patrick Durkin, Ben Potter
The Australian Financial Review – Page: 6 : 2-May-18

The Victorian Government’s May 2018 Budget has forecast a surplus of $A1.4bn in 2018-19, amid expectations that revenue will rise by almost nine per cent. The Government has attributed the strong Budget outlook to factors such as rising stamp duty and payroll tax revenue, the state’s economic growth and an increase in its share of GST revenue. The Government has also announced that it will invest $A13.7bn in infrastructure projects, including hospitals, schools and roads.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, SNOWY HYDRO LIMITED, MELBOURNE AIRPORT, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Labor bracing for backlash over $40m timber buyout

roymorgansocial Leave a comment

Original article by Samantha Hutchinson
The Australian – Page: 7 : 4-Jul-17

The Victorian Government has entered into an agreement to acquire a majority stake in the Heyfield timber mill in the Latrobe Valley. The mill has been under threat of closure, with the potential loss of 250 jobs, due to insufficient supply of timber from state-owned forests. Agriculture and Regional Development Minister Jaala Pulford said the Hermal Group, the mill’s parent company, had agreed that there will be no loss of jobs while the sale process is being finalised. The Government is understood to have paid between $A38 million and $A42 million to conclude the deal.

CORPORATES
VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, HERMAL GROUP, AUSTRALIAN SUSTAINABLE HARDWOODS, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA