Victoria walking an economic tightrope

It took just 90 minutes for the Victorian government’s optimistic budget forecasts to begin to look less rosy, after the Reserve Bank raised its cash target, pushing the key three-year bond rate to above 3 per cent.

Although interest expenses remain at a modest 6 per cent of total revenue, the latest budget specifically avoids any fiscal repair. This means the state’s fragile public finances are held hostage to Victoria’s economy returning to its pre-pandemic growth trajectory.Instead of committing to spending savings, the government has instead promised another $29 billion in new spending initiatives, as part of its “COVID-19 recovery program” ahead of the November state election.

State Treasury readily admits the risks to the state outlook are “greater than normal” meaning the forecasts are “subject to a higher degree of uncertainty”., easily the biggest risk is the re-emergence of a more virulent, vaccine-resistant variant. Not included is the impact higher inflation would have on the state’s $37 billion public sector wage bill, more than a third of all public spending. The budget assumed an annual 2.2 per cent wage increase, but with Labor pushing for real wage rises, Mr Pallas indicated this number would need to be reviewed—upward.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'I've let a whole lot of people down': Victoria police officer admits wrongdoing amid IBAC investigationDetective Sergeant Wayne Dean has admitted to accepting 'gratitude' payments after helping to resolve debt disputes. Clearly a shake down for his own pockets He knew exactly what he was doing, not recording interviews etc. He's sorry he let down his underbelly buddy. He's only sorry because he got caught.
Source: abcnews - 🏆 5. / 83 Read more »

$12 billion pandemic repair plan centrepiece of Victoria's election-year budgetVictoria's election-year budget will pile on debt to fix the state's beleaguered health system and continue to pump money into education and transport, all while it attempts to claw back a modest surplus in just four years. Sacking health staff during a pandemic, not building any hospitals, ignoring the vaxx injury pandemic etc.... Don't tell me DanielAndrewsMP cares one iota about fixing the health system. But not one mention of the natural environment, climate change or biodiversity crisis that is killing our planet springst $12 billion pandemic repair with $17 billion of debt mostly created by Labor. Victorians will be paying millions only in interest then repay the debt, till eternity!!
Source: abcnews - 🏆 5. / 83 Read more »