Victoria to slash bloated public service

Thursday 20 February 2025

Victoria has the nation’s largest per capita debt and the lowest credit rating.

According to the recent budget update, Victoria’s net debt increased from $36 billion to $155 billion in the last decade. The state’s net debt is forecast to increase to $187 billion over the three years to 2026-27.

The bloating of Victoria’s public sector is a major contribution to the state’s growing debt.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.