The Victorian Chamber of Commerce and Industry (VCCI) is urging the State Government to exercise restraint in its upcoming Budget, warning that broad, untargeted spending risks adding to debt without delivering lasting economic benefit.
With global uncertainty rising and confidence weakening, now is the time for disciplined, targeted support that reflects the reality businesses and households are facing.
Recent warnings from the International Monetary Fund and the Reserve Bank of Australia point to a more challenging economic outlook, with inflation expected to rise and growth slowing amid ongoing global instability.
Support measures should be targeted, temporary and funded within existing means, not layered on top of an already substantial debt burden.
The State Government's decision to extend free public transport through May and introduce half-price fares from June will provide something for commuters. However, such measures represent a significant ongoing commitment, with benefits unlikely to be evenly felt, particularly for those in outer suburban and regional areas with limited access to public transport.
Victoria's economic recovery will depend on creating the right conditions for businesses to invest, grow and employ – not adding further cost or complexity at a time of heightened uncertainty. Stabilising and reducing debt is the most important critical cost-of-living measure.
To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Sally Curtain:
"Victorian businesses are under real pressure: they're cutting hours, absorbing costs and making tough decisions just to stay afloat.
"We understand the motivation to provide cost-of-living relief, but it's not about how much government spends – it's about how well it's targeted.
"Free and discounted public transport will help some commuters, but without clear modelling and targeting, it risks becoming a blunt and expensive solution.
"Victoria doesn't have a revenue problem - it has a spending problem, and that's where the focus needs to be. This is not the time for permanent commitments that add to debt. It's the time for disciplined decisions that support those who need it most while keeping the state's finances on a sustainable path.
"Every new ongoing measure adds to the debt burden, and ultimately that cost flows through to businesses and the community.
"Business needs certainty. It needs confidence. And that comes from strong, responsible economic management."
