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Labor’s half-yearly $10 billion deficit budget revealed

This morning’s 2020-21 Mid-Year Financial Report has confirmed that Victoria’s budget remains in a dire position with more debt piling up by the day.

The figures confirm that Labor has racked up an operating deficit of over $10 billion in the first six months of the 2020-21 financial year.

Under Labor, employee expenses continued its unsustainable rise. The most recent figures confirmed an 11 per cent increase compared with the same time the previous year, which is more than five times higher than the Andrews Labor Government’s official public sector wages policy of 2 per cent increases across the board.

Last month in its announcement that it was downgrading Victoria’s credit rating, Moody’s said that it was concerned about the Andrews Labor Government’s governance of public finances, saying “… the state faces substantial operating deficits.”

In December, when it announced its double downgrade of Victoria’s credit rating, Standard and Poors said Victoria’s path back to surplus would be more challenging than other states due to “…the significant increase in debt stock projected over the next few years.”

Comments attributable to Shadow Treasurer, Louise Staley:

“Today’s Mid-Year Financial Report shows that Labor has lost control of the State’s finances with a $10 billion deficit confirmed for the first six months of the financial year.

“Labor’s budget mismanagement has resulted in both major credit rating agencies downgrading Victoria’s credit rating, which will only make Labor’s borrowings more expensive to pay back and less money towards clearing the growing hospital waitlists, fixing our crumbling rural roads and investing in our children’s education.”

“Employee expenses are out of control. Labor say they have a 2 per cent annual wage increase policy across the Victorian public sector, but somehow we have an 11 per cent increase in employee expenses. This doesn’t add up.

“The Andrews Labor Government is leaving a legacy of debt that will take Victorian taxpayers decades to repay.”

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