Labor hands down disastrous mid-year financial report

Labor has officially buggered the budget.

Today the Andrews Labor Government handed down its disastrous Mid-Year Financial Report with a staggering $1.1 billion deficit.

And it’s only going to get worse considering this result was until December 2019, before the devastating bushfires or the coronavirus.

It’s the third negative quarter in a row for Daniel Andrews and Labor who have failed to rein in spending and continued to plummet the state further into debt.

Prior to today’s report, we already knew:

  • that the unemployment rate in Victoria at 5.4 per cent is above the national average of 5.3 per cent and well above the NSW rate of 4.5 per cent

  • economic growth in the previous quarter is negative, and well below the national average and the growth seen in NSW

  • Victoria’s budget was already in deficit in the first quarter of 2019-20.

Today, the Government is in hiding, refusing to come clean with Victorians that the budget deficit of $1.1 billion is entirely of its making.

Since being elected Daniel Andrews and Labor have increased or introduced 28 new taxes. Tax revenue has increased by almost $470 million for the first half of 19/20 compared to the same time last year.

Public servant employee expenses are up almost $1 billion in the first half of 19/20 compared to the same time last year.

Debt continues to rise, with $10 billion being added to the state’s net debt, increasing by almost 40 per cent in just six months. Net debt to GSP has jumped from 5.7 per cent to 7.6 per cent over this period.

This government has lost control of the budget and now things are serious - with bushfires and coronavirus - it hasn’t got the capacity to be able to stimulate the economy.

Comments attributable to Shadow Treasurer, Louise Staley:

“Today’s report confirms what every Victorian already knows, that Andrews has buggered the budget and has resorted to more and more taxes.

“Labor has lost control of its spending. It’s not a revenue problem, it’s a spending problem for Daniel Andrews and Labor who have overseen $25 billion in waste and blowouts on major projects.

“When Labor runs out of money it comes after yours, and we’re seeing this through its 28 new or increased taxes hurting every Victorian.

“On one hand we’re seeing economic stimulus packages from the Federal Government encouraging spending, and on the other hand we’re seeing the Andrews Labor Government taking money from Victorians’ pockets with its new taxes and promising $4 billion in cuts.”

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