Labor is preparing to tighten the purse strings in the upcoming Victorian budget as it deals with the rising costs of its building projects and pays the bills incurred during the COVID-19 pandemic.
These are some of the headlines you might see after Tim Pallas hands down his ninth budget on Tuesday.
All are bracing for a tough period. The traditional post-budget drinks around Parliament for MPs have also been canned for the year because it would be a bad look.The premier is a master of political messaging, and he has been laying the groundwork for pain. He's blamed the Reserve Bank for telling the state, and households, that it was safe to borrow because interest rates wouldn't be going up.
The Premier says the state has two types of debt: the "economy-growing" debt to build for projects – which he likens to a household mortgage – and COVID-19 debt which must be repaid quickly. There has been a nervousness in the public sector and its union allies are furious with the Labor government. So don't expect to see any new infrastructure projects in the budget, or any major spending at all – unless it was promised at the election.Victoria's debt under scrutinyS&P Global Ratings analyst Anthony Walker said sustained fiscal discipline would be key if the state was to regain a higher rating.
Even the most partisan of Labor types, including MPs, concede that a weak opposition is bad for democracy and good government because it means poor decision making goes unchecked.
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