Emergency payment required to meet Labor’s record interest bill

Liberal Party Victoria

The State Labor Government was required to make a secret emergency payment to meet Victoria’s record interest bill just weeks prior to the 2023-24 State Budget.

Documents obtained by the Victorian Opposition underFreedom of Information reveal in April 2023, Treasurer Tim Pallas received a request from the Department of Treasury and Finance to approve a Treasurer’s Advance to pay for Victoria’s Budget Sector Debt Portfolio (BSDP) interest expenses.

The brief confirms the net BSDP interest expense for 2022-23 was projected to be $57.2 million over budget.

Furthermore, the following month in May 2023, the Allan Labor Government failed to provide the details of this emergency payment when requested by the Victorian Parliament’sPublic Accounts and Estimates Committee.

Following a decade of financial mismanagement under Labor, Victoria’s net debt has risen from $21.8 billion to a projected $177.8 billion by mid-2027, with interest repayments set to reach $24 million each and every day.

Shadow Treasurer, Brad Rowswell, said: “Labor cannot manage money and Victorians are paying the price.

“With Treasurer Tim Pallas forced to pay off one overdue credit card with another, this brief shows just how dire Victoria’s finances are under Labor.

“Labor’s financial mismanagement has real-world consequences. Higher debt means higher taxes and less money for the essential health, education, community safety and infrastructure projects communities across the state need and deserve.

“With 53 new or increased taxes introduced since Labor came to office, the Victorian Liberals and Nationals again call on the Allan Labor Government to rule out any tax increases in the upcoming State Budget.”

/Public Release. View in full here.