Victorian opposition says state budgets will return to profitability by 2026 if elected

The Victorian opposition has promised to bring the state budget back into the black within five years if the Liberal and state coalition wins next year’s elections.

The announcement by shadow treasury Louise Staley plans the Andrews government to overturn the recession caused by COVID-19 in November 2020 with an unprecedented $ 23.3 billion budget deficit by the next fiscal year. It will be done after the announcement.

Staley Said A reporter on April 26 said the coalition would overturn the Andrews government’s state deficit through sustainable economic growth, reduce government “waste” and urge the federal government to gain a larger share of the GST.

“It shouldn’t be a difficult desire,” Staley said. “Other states are definitely going to balance their budgets in that time frame.”

“The alternative to that desire is to always run a budget deficit and never,” Starley added.

Treasurer Tim Pallas predicted a $ 155 billion deficit in 2023/24, $ 13 billion in 2021/22, $ 6.7 billion in 2022/23, and 2023/24. Was predicted to decrease to $ 5.9 billion.

According to the forecast, international rating agencies S & P Global and Moody’s downgraded Victoria’s credit rating from AAA to AA in December 2020 and raised interest rates on state loans. That’s an additional $ 10 million annually in addition to the state’s $ 2.8 billion. I have already paid.

In addition, figures released by the Australian Bureau of Statistics in February 2021 show that Victoria’s trade deficit with China has worsened since Victoria’s Prime Minister Daniel Andrews signed the Belt and Road Initiative, which has now ended. Clarified. Report in 2018 Age..

“In our view, the Victoria State Government’s path to fiscal rehabilitation will be more difficult and longer than in other states due to the significant increase in debt stock expected over the next few years,” S & P Global said. Said in December 2020.

In response, Pallas was expected to decide on a rating agency to downgrade Victoria’s credit, but Reserve Bank Governor Philip Lowe wants the state to borrow more to deal with the pandemic recession. He said it was in line with the call.

“Surely one of the things Victorians can be sure of is to stay in control of the economy responsibly, which inevitably means changing the situation at the time,” said Pallas. ..

However, opposition leader Mike O’Brien has criticized the Andrews government for not controlling the state’s finances.

“That means higher taxes and fees, less burden on schools and hospitals,” he said.

Shadow Treasury Louise Staley said her announcement was about “maintaining a healthy financial balance” and that Victorian people could get the services they needed for health, education and transportation.

However, Victorian Greens criticized the opposition’s plans, saying the proposal instead “destroys services and jobs when the community needs it most.”

“If the pandemic taught us something, it means that good safe work, good medical care, good management of public housing, and a well-trained public health team are essential,” Victorian said. Green Deputy Leader, Ellen Sandel, said statement..

East-West link revival

Starry also reiterated the opposition’s position to build an East-West link in 2022 if elected.

“Infrastructure is out of the capital account. Before building the northeast link, we said we would build the east-west link. But we know we have the infrastructure projects we need, but that’s all the balance. is.”

The proposed tunnel from the edge of Clifton Hill’s Eastern Freeway to Citilink in Parkville was dumped by the Labor government shortly after the 2014 state elections.

“We have demonstrated in the past that we can provide infrastructure projects as a free state government without spikes in costs, and that’s what we do again,” she said.

Staley said Age: “COVID, all blockades, and the changes we all faced, whether we’re working from home or reassessing where we live, all of this will mean Victoria’s numbers in the future. Over the years, it can be in a different location than it was in. “

Victoria’s 2021/22 budget will be taken over on May 20th.

AAP contributed to this report.