Opponents in Australia’s Victoria state promise ceiling to stop ‘wasteful’ spending as debt nears $167 billion

If the Victorian opposition wins state elections in November, a legislated government debt ceiling will be introduced to stop wasteful spending.

The Liberal and National Party economic plans include caps on spending to manage state debt, which is projected to reach $167 billion (US$106.9 billion) by 2025.

“This is the largest debt of any state in Australia, more than New South Wales, Queensland and Tasmania combined,” opposition leader Matthew Guy and Shadow Treasurer David Davis said in a joint statement. said.

“Interest on Daniel Andrews’ debt will reach more than $6 billion (US$3.8 billion) by 2025. This is enough to build six Melton hospitals.”

The Debt Ceiling Act prohibits the government from exceeding statutory ceilings without Congressional approval.

Opposition parties did not specify a level for the ceiling, saying it would be set once an accurate baseline debt level was known.

On Friday, Davis contacted the Treasury Department to request an urgent update on Victoria’s balance sheet.

Guy had previously vowed to abandon the government’s $35 billion (US$22.4 billion) suburban rail loop and instead pour money into Victoria’s beleaguered health system.