Net debt forecast to grow to record $194 billion in three years

ABC NEWS (Australia)

Policy experts say the Victorian government is continuing to spend big despite a state debt forecast to be at record levels within three years. In today's state budget, Treasurer Jaclyn Symes has posted a 600-million-dollar surplus as well as major funding for the health system and crime prevention. But debt is set to reach close to 200-billion dollars by 2028

Transcript

00:00ALARMS AND ANGER OUTSIDE

00:04BUDGET BOOKS AND SPIN INSIDE

00:07FAMILIES AND BUSINESSES ARE CAREFULLY CONSIDERING EVERY DOLLAR

00:11AND THEY RIGHTLY EXPECT THEIR GOVERNMENT TO DO THE SAME

00:14THE BUDGET IS BANKING ON $3.3 BILLION IN CUTS TO THE PUBLIC SERVICE

00:19THE ACT IS SET TO FALL ON AT LEAST 1,200 JOBS

00:22WITH HUNDREDS MORE EXPECTED ONCE A REVIEW IS FINALIZED NEXT MONTH

00:25THE TREASURER UNABLE TO SAY WHAT PROGRAMS WILL GO

00:28VICTORIA HAVE OVER 500 ENTITIES AND 3,400 PUBLIC BOARDS AND COMMITTEES

00:34YOU CAN'T TELL ME THAT THERE'S NOT SOME FAT IN THERE

00:37CUTTING JOBS JUST FOR THE SAKE OF IT IS NOT ACCEPTABLE

00:40IT'S NOT A LABOR GOVERNMENT THAT DOES THIS SORT OF THING

00:43TO HIDE THE CUTS AS THEY'VE DONE IS ABSOLUTELY DESPICABLE

00:47DESPITE THOSE CUTS DEBT CONTINUES TO SOAR

00:50IT'S $167 BILLION NEXT YEAR HITTING $194 BILLION IN THREE YEARS

00:56INTEREST REPAYMENTS ARE $7.5 BILLION NEXT YEAR

01:00RISING TO $10.5 BILLION IN THREE YEARS

01:04THAT'S NEARLY $30 MILLION EVERY DAY

01:06THAT MONEY IS JUST BEING FLUSHED DOWN THE TOILET BY LABOR

01:09THIS IS A RESPONSIBLE BUDGET

01:11IT DELIVERS ON OUR FISCAL PLAN

01:13IT RETURNS VICTORIA TO SURPLUS

01:16IT'S MODEST AT JUST $600 MILLION BUT IT IS FORECAST TO GROW

01:20THERE'S NO NEW TAXES BUT THERE'S ALSO NO RELIEF

01:22HOUSEHOLDS AND BUSINESSES SLUGGED $41.6 BILLION

01:26THE TAX TAKE IS GROWING FASTER THAN THE STATE'S ECONOMY

01:30GOING GOING SOLD

01:32THE TAX TAKE DUTY AND LAND TAX RAISING NEARLY $10 BILLION ALONE

01:35IT'S ALLOWED LABOR TO CONTINUE TO SPEND ON HEALTH

01:37LAW AND ORDER AND ROADS

01:39IGNORING PLEAS FOR BUDGET RESTRAINT

01:41THEY HAVEN'T DONE ANY HEAVY LIFTING

01:42THEY'VE MADE A DECISION THAT IT'S BETTER TO KEEP SPENDING

01:44BECAUSE THAT'S WHAT PEOPLE WANT THE SERVICES

01:46THE INFRASTRUCTURE

01:47AND THEY'RE NOT SO WORRIED I THINK ABOUT PUBLIC DEBT

01:49THAT'S AT LEAST THE GOVERNMENT'S FIND

01:51NEXT MONTH THE TREASURE WILL JET OFF TO NEW YORK

01:53TO CONVINCE RATING AGENCIES THE BUDGET IS ON TRACK

01:57BUT OFF THE RAILS THE COST OF INFRASTRUCTURE

01:59OVER 500 GOVERNMENT SIGNATURE PROJECTS

02:01ARE BLOWN OUT BY $3.3 BILLION DOLLARS

02:04INCLUDING METROTUNNEL

02:06AND THAT'S ABOUT THE SAME AMOUNT

02:07THE TREASURE IS HOPING TO SAVE FROM THE PUBLIC SERVICE

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