VCCI warns of Victoria's growing state debt
Victoria's latest pre-election budget update has raised concerns about the state's financial future, with cash deficits expected to continue throughout the forward estimates period.
The Victorian Chamber of Commerce and Industry (VCCI) has warned that the figures highlight the growing pressure on the state's finances and the need for stronger budget management.
The organisation says Victoria cannot continue increasing its debt at the current rate. It is calling for long-term financial reforms that support economic growth without placing further pressure on government borrowing.
The VCCI has outlined five key measures to improve the state's financial position:
Control government spending: Work towards cash budget surpluses over the economic cycle and avoid relying on emergency funds as a regular source of funding.
Review infrastructure projects: Reduce spending on projects that are unlikely to deliver long-term economic or population growth benefits.
Reform the tax system: Review state taxes to reduce their impact on economic activity. The VCCI argues that stamp duty places a heavier burden on the economy than land and consumption-based taxes.
Remain competitive with other states: Ensure Victoria's tax rates and policies encourage businesses, investment and skilled workers to choose the state.
Introduce clear budget rules: Establish stronger financial guidelines to improve spending decisions, project selection and debt management.
VCCI Chief Executive Sally Curtain said Victoria needed to restore business confidence while bringing greater discipline to government finances.
She said the business community was ready to support economic growth, but the government needed to create the right conditions for investment, business expansion and job creation.
Ms Curtain also described the upcoming state election as an opportunity to reset Victoria's economic direction and make sustainable financial management a priority.
She warned that continued borrowing and spending beyond the state's means could leave future generations facing the burden of today's financial decisions.
The VCCI says difficult decisions are needed now to restore Victoria's finances and build a stronger foundation for long-term economic growth.
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Source : Press Released.
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