The Victorian government is working hard to try to paint a rosy picture of the state’s finances ahead of the budget. There are a number of sweeteners promised with no new taxes, an operating surplus and an extra 11 billion dollars for the health sector mostly targeted at hospitals. But the axe is set to fall on the public service with some tough decisions to be made as rising state debt poses a threat to the bottom line.
00:00At a yet-to-open metro tunnel station, the government's counting on the imagination of Victoria's next generation of taxpayers.
00:11Will there be any trade fields?
00:13Jacinta Allen and the Treasurer keen to set a positive tone ahead of tomorrow's budget.
00:18I can confirm in tomorrow's budget there will be no new taxes.
00:23Jaclyn Syme's first budget as Treasurer is promised to deliver a $600 million operating surplus, down from the $1.6 billion surplus forecast last December.
00:34They were $1 billion out. So if they get it a billion dollars wrong again this year, they're going to be in a $400 million deficit.
00:43In relation to future surpluses, we'll be looking at about an average of $1.9 billion surpluses going forward.
00:51I intend to stick to that or indeed do better.
00:54Victoria's net debt is expected to rise, the latest update suggesting it will reach $187 billion within three years.
01:03I think they need to have a clearer strategy about what the state needs in terms of how we boost productivity.
01:10The state's economy is fairly soft compared to other parts of the country.
01:14Despite rolling out promises of free public transport for kids and seniors on weekends,
01:19Victorians are warned tomorrow's budget includes tough decisions.
01:23The Treasurer will find savings by cutting thousands of public sector jobs.
01:28It will not be exactly evident about the jobs that will go tomorrow because we want to make sure that we're having those discussions with department secretaries.
01:37But experts have urged the government to go further and cut back on its major infrastructure projects.
01:42Particularly the suburban railroad, that looks like the most marginal project.
01:46We think that the government should either pause or cancel that project given the limited benefits and the likelihood of big cost rises there.
01:54But the Premier's made clear the SRL is here to stay.
01:58And with more money being funneled into the state's troubled healthcare system,
02:02in what the government's spruiking as a record spend, it means savings will have to be found elsewhere.
