Independent auditor finds Victoria government is spending well beyond its means

ABC NEWS (Australia)

Victoria is facing record debt and spending well beyond its means, according to a review by the state's financial watchdog. An annual review by the auditor general shows it’s getting harder for Victoria to pay down that debt.

Transcript

00:00As Victorians sweltered today, the State's Assistant Treasurer faced the heat.

00:09Alright well, look what the AFR shows is that the investment the government's making into

00:14services and into infrastructure is making a profound difference.

00:19The AFR, or Annual Financial Report, by the Auditor-General, has painted a picture of

00:25record debt that will continue to rise faster than economic growth.

00:30And the report by the Independent Auditor tells us that in Victoria things are worse

00:36than we've been told they are.

00:38The Auditor-General found ongoing fiscal cash deficits are not financially sustainable and

00:44indicate underlying structural risks.

00:47We've been really clear and upfront that we've got a strategy to deal with these issues.

00:51Forever and a day they've denied that there is an economic problem in Victoria and Victorians

00:55have been paying the price.

00:57That price will continue to grow.

00:59Within four years, 9% of the State's budget, or $9.5 billion, will go towards interest

01:05payments alone.

01:07The Auditor-General says there's no clear long-term fiscal plan to turn the tide.

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