Released today, the 2025-26 Mid-Year Financial Report has confirmed:
- Net debt reached $160.9 billion, up $10.1 billion in just six months.
- $3.8 billion was spent on interest repayments in the past six months, up $522 million on the same period last year.
- Taxation revenue increased by $2.1 billion compared with the same period last year, a 12.2 per cent increase.
- Employee expenses for the six months to December 2025 were $22.9 billion, already 52% of the full year budget, meaning they are running ahead of budget.
Following a decade of waste and reckless spending under Labor, Victoria has the most debt, highest taxes, and poorest business conditions of any state in the nation, all whilst essential health, housing and community safety services suffer.
Leader of the Opposition and Shadow Treasurer, Jess Wilson, said: "Today's report confirms more debt, more interest and more taxes from a Labor Government that simply cannot manage money.
"With interest repayments on Labor's record debt soon to hit $1 million every single hour, it is any wonder why we can't fill potholes, properly fund our schools or keep local police stations open?
"Only a Liberal and Nationals Government I lead will end Labor's era of reckless waste, ease cost of living pressures and guarantee the essential services Victorians need and deserve."
Shadow Minister for Finance, Bridget Vallence, said: "The government's mid-year financial report released today demonstrates that Premier Jacinta Allan and Labor have lost control of Victoria's finances and their fiscal strategy is failing.
"Victorians will be shocked to find Labor recklessly borrowing $12.7 billion more to fund cost overruns on Big Build infrastructure projects that are embroiled in a $15 billion corruption and crime gang scandal.
"The Victorian Liberals and Nationals will restore financial accountability, fiscal responsibility, and strengthen the economy. It's time for a fresh start."
