Victoria’s net debt prediction has jumped by more than $6 billion in six months and is now expected to reach $177.8b by 2027.
The state government attributes that to infrastructure investment, particularly extra funding for the North East Link, which has blown out from $10b to $26.1b, and associated freeway upgrades.
A 2023/24 budget update released on Friday by Treasurer Tim Pallas reveals net debt is expected to reach $135.5b by June next year.
It’s then set to climb to $177.8b by June 2027, which is $6.4b higher than the estimate in the May state budget, representing 25.1 per cent of gross state product.
Tax revenue is expected to increase by $900 million this financial year and by $1.1b next year, compared to what was predicted in May, mostly due to increases to payroll and land taxes.
Source: AAP
