UPDATED: The Victorian Government has handed down its 2025 state budget, with an emphasis on the troubled healthcare system in a bid to make it cheaper and more accessible.
Treasurer Jaclyn Symes revealed net debt will reach A$167.6 billion this year and will eventually grow to $194 billion in three years.
This will lead to the state paying $7.6 billion in interest in 2025-26 or $20.7 million a day.
The Allan government announced an A$634.3 million package to open nine new or expanded hospitals.
The government has also committed $11.1 billion to health, including a $9.3 billion boost to hospital funding.
“We’re focused on what matters most – opening new hospitals, delivering better care and backing our health workforce – because free, accessible and lifesaving care is what every Victorian deserves,” Minister for health and ambulance services, Mary-Anne Thomas said.
The majority of the money will be spent on Urgent Care Clinics across the state and pharmacists will be able to treat more conditions, with consultations free of charge.
"We are working to ensure our hospitals have the funding that they need in order to meet the needs of Victorians," said Health Minister Mary-Anne Thomas.
Symes is set to deliver a $600 million operating surplus, down from the $1.6 million forecast in December.
"[Tuesday's] budget will confirm the first operating surplus of the state of Victoria since the pandemic," Premier Jacinta Allan said on Monday,” she said.
While this is a promising operating surplus, experts warn that years of rising debt still remain a threat.
"It's pretty obvious the Victorian budget is under pressure. We've seen debt rising quite significantly," the Grattan Institute's public policy and economics expert, Trent Wiltshire said.
The Victorian Government also announced a record $2.3 billion in cost-of-living relief.
One of the biggest draw cards is the reformed public transport costs for children and seniors. For children under 18, they will be able to travel on public transport for free and seniors will benefit from free public transport on weekends.
“It’s a huge help for families – saving them upwards of $700 a year,” Symes said.
“We’re also expanding free weekend public transport for every Seniors Card holder in Victoria: allowing grandparents to enjoy time with family, or to get out and explore the state, without worrying about how much it might cost.”
While there has been relief for families on public transport costs, a long-awaited myki upgrade has been left in the dust.
The new myki ticketing system, which would allow travellers to tap on with bank cards and smartphones, suffered a $136.7 million cost blow-out and is delayed for up to 18 months.
The cost of installing new ticket readers, turnstiles and other infrastructure for the upgrade increased from $543.6 million to $680.3 million.
The budget was bad news for public service workers, with the announced budget assuming 1,200 fewer public servants.
"We have flagged up to around 3,000 but I will have more to say after [Ms Silver's] final report," the treasurer said.
“The reason is not a lack of transparency, the reason is because this will impact individuals and we need to go through the proper processes.”
