The 2019-20 Budget Update released today shows Victoria’s economy is strong and the budget remains in surplus, as the state faces weakening national economic conditions and falling consumer confidence.
The mid-year update records a $618 million surplus in 2019-20, about $400 million less than forecast in May’s 2019/20 Budget. This is largely due to a half-billion dollar write down in GST receipts from the Commonwealth, driven by weaker national economic growth.
Despite a softer national economy, Victoria’s economic fundamentals remain strong.
The Budget Update shows the Victorian economy continues to perform strongly – growing 3.0 per cent in 2018-19 – well above the 1.9 per cent national growth rate.
The Budget Update also confirms that Government infrastructure investment is projected to average $13.9 billion annually over the next four years, nearly triple the average of $4.9 billion a year from 2005-06 to 2014-2015.
This is helping underpin Victoria’s jobs growth- since the election of the Andrews Labor Government in November 2014, more than 500,000 jobs have been created in Victoria.
With Victoria’s economic fundamentals strong, now is the time to make the tough decisions to keep it that way.
That’s why the Government is undertaking a base and efficiency review across all Government departments to ensure that our investments are focused on the priorities the Government and those of the Victorian people, as determined at the 2018 election.
We have also set the state’s wages policy at 2 per cent, while providing the ability for public sector workers to pursue a higher outcome through demonstrated savings.
These tough choices will help ensure that we deliver on every single one of our election commitments, while continuing to invest in the major projects our state needs to create jobs, stimulate investment and drive our economy.
As stated by Treasurer Tim Pallas
“In the face of a weakening national economy, the Victorian Budget is in surplus and our state’s economic fundamentals remain strong.”
“With a strong Victorian economy, now is the time to be making some tough choices – they will help ensure that we can continue to invest in the major projects that our state needs to create jobs, stimulate investment and drive our economy.”
“We will also continue to push the Commonwealth Government to do more to boost economic growth.”