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Strong Economic Future For Victoria

11 November 2021

Victoria’s economy is well placed to recover according to the state’s Quarterly Financial Report, thanks to extraordinary – and still increasing – vaccination rates and continued investment from the Andrews Labor Government.

The report, published today, presents the financial results for the Victorian general government sector for the three months up to 30 September this year – with data showing that the state has a strong position to launch from.

In the leadup to the reporting period, the Victorian economy had rebounded sharply with state final demand already above pre-pandemic levels by the end of the 2021 June quarter.

While the Delta variant outbreak caused a fall in economic activity, a range of figures remained stronger than during restrictions in June and September quarters 2020.

The economy is being supported by the Labor Government’s infrastructure investment of $3.8 billion in the three months to September 2021, supporting economic activity and creating jobs.

Major infrastructure project spending included investments in level crossing removals, Metro Tunnel work, the Big Housing Build and North East Link.

The Government also provided record levels of assistance to support businesses and jobs, with business support throughout the pandemic hitting $11 billion.

An increase in expenses from the pro-rata budget reflected the additional support provided by the Government during the September quarter, includes business support and measures to deliver the frontline health response.

Total expenses were $2.8 billion above pro-rata at 28.3 per cent of the budget estimate and the net result from transactions was a deficit of $6.8 billion, thanks to the response to the Delta outbreak.

The report was prepared in accordance with the Financial Management Act 1994, which requires the report to be consistent with the appropriate financial reporting frameworks.

Quotes attributable to Treasurer Tim Pallas

“As we approach the 90 per cent double-dose vaccination milestone, our economy is bouncing back to life and we have millions of Victorians to thank for turning up to get vaccinated.”

“In the wake of the global pandemic we’re investing heavily in the state’s recovery, ensuring every dollar spent makes Victoria stronger.”

Reviewed 11 November 2021

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