The 2010-11 Mid-Year Financial Report presents the financial results for the Victorian public sector for the six months to 31 December 2010.
The net result from transactions for this period was $347 million for the State of Victoria and $482 million for the general government sector.
Treasurer Kim Wells said that since December 31, a number of risks to Victoria’s finances have emerged and the outlook for the Budget has become more challenging.
The Mid-Year Financial Report states:
Looking forward the financial results will come under significant pressure from both expenditure and revenue risks.
“Labor has left Victoria with a series of projects that have blown out in cost by millions of dollars, such as the Regional Rail Link project, the myki ticketing mess, and the West Gate Bridge strengthening project,” Mr Wells said.
“Victoria has also been singled out by Canberra for an unprecedented cut in GST revenue of $500 million in the 2011-12 financial year, and an estimated $2.5 billion over the forward estimates.
“The proposed GST distribution singles out Victoria for the biggest cut of any state and the Coalition Government will strongly oppose it,” Mr Wells said.
The Coalition Government announced a series of measures to provide immediate assistance to Victorians who have been impacted upon by the devastating flood events of January and February.
“These communities will need long-term support to recover, and currently there are a number of communities where flood waters have not subsided, so assessments for flood recovery and restoration are ongoing,” Mr Wells said.
Mr Wells said these are significant financial challenges for the 2011-12 Budget.
“The Coalition Government is committed to delivering our election commitments and achieving the financial parameters we set during the election,” Mr Wells said.
The 2010-11 Mid-Year Financial Report can be viewed at http://www.dtf.vic.gov.au/.
110315 - Wells 2010-11 Mid-Year Financial Report (PDF 36KB)