Victoria's $200bn debt becomes election issue weeks before poll

Summarised from 2 outlets · Updated 31 Oct, 20:20 · Archive

Victoria's net debt has grown to $165 billion and is forecast to reach $200 billion by decade's end, weeks before an election.

Victoria's net debt has grown from approximately $22 billion to $165 billion under the incumbent Labor government, with forecasts suggesting it will reach $200 billion by the end of the decade. Interest repayments are projected to consume 23 cents of every dollar the state raises through taxes.

Premier Ben Carroll, who took office in July, has invoked the legacy of Sir Henry Bolte, Victoria's longest-serving premier, who borrowed heavily during his tenure to fund major infrastructure including the West Gate Bridge, City Loop and Melbourne Airport. Carroll told a Chamber of Commerce event that Victoria is moving from a building cycle into a growth phase, suggesting the borrowing was an investment in future prosperity.

Whether debt becomes a decisive election issue depends on voters' priorities. Pollster Tony Barry notes that debt remains a lower-order concern for voters but is increasingly being linked to tangible services. "Less nurses, less doctors, less elective surgery, less road maintenance and more potholes," he said, suggesting voters are connecting state finances to everyday consequences. The $208 billion Big Build infrastructure program will be central to whether voters believe they have seen a return on the state's investment.

How it is being reported

• Is borrowed time up? The $200 billion election questionAustralia's most indebted state is weeks from an election but is its balance sheet really in crisis, and will it matter at the ballot box?Perth Now · 31 Oct, 20:02
• Is borrowed time up? The $200 billion election questionAustralia's most indebted state is weeks from an election but is its balance sheet really in crisis, and will it matter at the ballot box?The West Australian · 31 Oct, 20:02

In this story: Victoria · Ben Carroll · Henry Bolte · Tony Barry · Melbourne

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