Report: Victoria’s debt is heading in the direction of $305 billion

Victoria’s internet debt will rise to $305.3 billion if the federal government doesn’t begin to repay its borrowings, the unbiased price range watchdog has warned.

The Parliamentary Price range Workplace on Sunday launched its projections on the state’s debt following the 2023/24 state price range.

Treasurer Tim Pallas forecast internet debt will enhance by 10.1 per cent per yr on common from 2022/23 to 2026/27.

The price range workplace discovered if internet debt continued to rise at that price, it is going to attain $305.3b in 2032/33 or 31.9 per cent of gross state product.

The workplace additionally seemed on the authorities’s forecast that internet debt would hit $171.4b and be 24.5 per cent of GSP in 2026/27.

‘Highest taxes in Australia’

It discovered if the ratio stayed at 24.5 per cent, internet debt would develop 5.3 per cent per yr to achieve $234b in 2032/33.

Mr Pallas has conceded measures are wanted to stabilise the state’s debt, with the federal government introducing new levies on large companies and property buyers.

However shadow treasurer Brad Rowswell stated debt would solely rise below the present authorities.

“We’re paying the very best taxes in Australia whereas debt continues to climb due to the monetary incompetency of Labor and life simply will get more durable for Victorians,” he stated.