Victoria Budget Projects $1B Surplus, $199B Debt Peak

Victorian Treasurer Jaclyn Symes delivered the state's 2026-27 budget on Tuesday, projecting the first operating surplus in seven years while net debt climbs toward 200 billion ahead of the November election.

The budget forecasts an operating surplus of 1 billion for the next financial year, down from a 1.9 billion projection in December, with total surpluses reaching 6.8 billion over four years. Net debt is expected to reach 175.6 billion by the end of that year and peak at 199.3 billion by mid-2030, stabilizing at about 24.4 to 24.9 percent of gross state product. Annual interest repayments on the debt are projected to rise to 11.8 billion by 2029-30, equivalent to more than 32 million daily and surpassing current spending on major infrastructure like the first stage of the Suburban Rail Loop.

Symes emphasized cost-of-living relief as the budget's focus, allocating 2.5 billion overall. Key measures include a 759 million one-off 20 percent discount on car registrations for personal vehicles, worth up to 372 per household, and 433 million to extend free public transport until May 2026 followed by half-price fares through year's end. Additional support covers school uniforms,...