New documents have revealed the Labor Government has been forced to use money set aside to repay one set of borrowings to cover a $230.9 million blowout in Victoria's interest bill.
A ministerial brief obtained by the Victorian Liberals and Nationals under freedom of information laws has confirmed a $230.9 million shortfall in the appropriation authority for Victoria's record interest repayments in 2024-25.
The brief confirms then Treasurer, Jaclyn Symes approved paying for this shortfall by dipping into funds set aside to repay the Central Banking System overdraft - government borrowing against funds held by Victorian departments and agencies.
In effect, Labor has used money set aside to repay one set of borrowings, to pay the interest bill on Victoria's debt.
In 2024, it was revealed the Labor Government provided emergency funding via a Treasurer's Advance to cover a more than $50 million blowout in interest expenses in 2022-23.
Under Labor, Victoria's net debt is set to reach a record $199.3 billion by 2029-30, and interest repayments this year will be greater than total operating expenditure on Victoria Police, Ambulance Victoria and all kindergarten services combined, with more than $1 billion still left over.
Leader of the Opposition and Shadow Treasurer, Jess Wilson, said: "This situation demonstrates exactly how dire Victoria's financial position has become.
"Labor has now been caught redirecting money meant to repay debt just to cover a hole in its interest bill.
"Only my Liberal and Nationals team has a plan to clean up the books, return the budget the budget to a real surplus and make Victoria the best place in the nation to do business."
