Victoria's financial position continues to deteriorate as new figures reveal the Allan Labor Government has effectively suspended paying off Victoria's debt as it falls due.
The 2024-25 State Budget confirms $1.07 billion was budgeted by special appropriation to retire Victorian Government bonds as they reached maturity during the 2023-24 financial year.
However, the recent Department of Treasury and Finance (DTF) Annual Report confirms only $26.2 million was retired across the period – just 2.6 per cent of the budgeted target.
Furthermore, the report states DTF and the Treasury Corporation of Victoria (TCV) base decisions to retire maturing debt on the state's liquidity position and expected future funding requirements, therefore indicating an expected further deterioration of Victoria's financial position.
The effective suspension of debt retirement comes as the Victorian Auditor-General (VAGO) warns that the refinancing of maturing debt "presents a significant financial sustainability challenge" over coming years.
Under the Allan Labor Government, Victoria's net debt is growing by more than $80 million a day and is set to reach a record $187.8 billion by 2027-28, with interest repayments to exceed $1 million an hour over the same period.
Shadow Minister for Finance, Jess Wilson, said: "The Allan Labor Government has effectively suspended paying off Victoria's debt.
"Instead of retiring Victoria's debts as they fall due, Labor is refinancing and rolling-over bonds at a higher cost – meaning even more money wasted on interest repayments and less for frontline services.
"By giving up on retiring bonds once they reach maturity, Labor is flying the white flag on reducing Victoria's record debt which continues to grow by $80 million a day.
