Tough crowd awaits as state budget sell begins
Victoria’s treasurer faces a tough crowd as he embarks on a pre-election budget sale with little in store for businesses.
Victorian Finance Minister Jaclyn Symes sounded cautiously optimistic as she unveiled her second budget on Tuesday, as the state narrowly avoided announcing a $200 billion net debt projection.
The budget predicts Victoria’s economy will grow 1.5 per cent this financial year, followed by two per cent in 2027/28 and 2.5 per cent in the next two years.
Annual inflation is expected to peak at 3.5 percent in 2026/27, despite the Central Bank increasing the cash rate to 4.35 percent just hours after the budget was distributed.
Ms Symes rejected predictions that the treasury painted a “rosier” outlook than other jurisdictions, with the budget predicting the cost of oil would fall to $70 a barrel by December.
“This is not an assumption unique to Victoria,” he told reporters.
“But of course in our sensitivity analysis we included a less hopeful view of whether the war would continue in the Middle East.”
Ms Symes will address Victoria’s business community at an event in Melbourne on Wednesday.
The budget allocated $432 million for free and half-price public transport fares, $760 million for a 20 percent discount on light vehicle registration and $100 million for improving bus routes.
Despite the welcome cost-of-living support for households, business leaders noted limited relief for small businesses grappling with similar economic pressures.
Melbourne Committee chief executive Scott Veenker described the budget as a missed opportunity.
“There weren’t enough initiatives to really help businesses gain confidence and really get Melbourne back to its magic,” he said.
“On the bright side, there were no new taxes, which gives our members some confidence.”
Net debt is expected to reach $199.3 billion by mid-2030, with interest repayments expected to rise to more than $32 million per day.
“We are quite concerned about rising debt levels,” Victoria Chamber of Commerce and Industry chief executive Sally Perde said.
“It raises more questions than answers.”
While cash was available for train and bus services and hospital upgrades, there were no big new ticket items for regional Victorians.
Six months before the state election, Victoria Nationals leader Danny O’Brien has criticized the Country Fire Authority’s commitment of $100 million in funding to replace its aging fleet spanning 10 years.
“This budget is already melting away as fast as a ball of wool at a kitten convention,” he said.
