Victoria defunds emergency services to plug budget deficit

Victoria’s finances are in dire straits, carrying the nation’s highest debt and lowest credit rating.

Victoria’s net debt was only $22.3 billion when the Labor government delivered its inaugural state budget in 2015. However, according to budget projections, net debt will reach $194 billion by 2028-29, up from $155.5 billion today.

Victorian net debt per capita was less than $3,600 in Labor’s first budget in 2015. It has since risen to $21,900 and is projected to reach $25,500 in 2028-29.

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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.