This approach has secured our state’s strong financial position, with an operating surplus of an estimated $1.0 billion in 2019-20, and surpluses averaging $3.4 billion a year over the forward estimates.
We promised to maintain a strong economy with a strong surplus – and with this Budget that’s exactly what we’ve delivered.
By maintaining our strong fiscal discipline – ensuring average expenditure growth over the next four years remains lower than average revenue growth – we will deliver operating surpluses in each year.
This is a careful and considered approach that means the Government is able to deliver on our positive plan for the people of Victoria, despite Australia’s softening property market and the resulting drop in property-related revenue.
As outlined in Labor’s Financial Statement 2018, released ahead of the 2018 Victorian election, net debt will be stabilised at 12% of gross state product (GSP) over the medium term, including an increase to accommodate changes in accounting standards from 2019-20 onwards.
This Budget also responds to changing economic conditions by improving the effectiveness of spending and creating a fairer tax system, bringing Victoria more into line with New South Wales. Victoria is one of only 10 comparable sub-sovereign governments holding a triple-A credit rating from both Standard & Poor’s and Moody’s – a testament to the state’s strong fiscal credentials.
By maintaining this prudent approach, the Victorian Government will continue to make sure Victoria has a strong economy – now and for the future.
Reviewed 22 May 2019