The Victorian Labor Government has set out a clear path to restore the Budget after the COVID-19 pandemic.
- Step 1: creating jobs, reducing unemployment and restoring economic growth
- Step 2: returning to an operating cash surplus
- Step 3: returning to operating surpluses
- Step 4: stabilising net debt levels as a proportion of Gross State Product (GSP)
- Step 5: reducing net debt as a proportion of GSP.
This strategy is working.
The government is growing our state’s economy and reducing debt as a share of the economy, while continuing to deliver the services and infrastructure Victorians rely on.
Our balance sheet is strong.
We have an operating surplus, and we will be the first government on the eastern seaboard to achieve this in 2025‑26. We are also strengthening accountability with the first major reform of the Financial Management Act 1994 in 30 years.
The changes:
- introduce an ‘early warning system’ for agencies to report any emerging financial risks to the Department of Treasury and Finance Secretary
- introduce enhanced responsibility for Accountable Officers and Chief Finance Officers for the financial management, financial performance and financial sustainability of their department or agency.
Now, we are taking further steps to reinforce our strong financial decision-making framework.
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