The Andrews Labor Government’s disciplined financial management has resulted in a strong operating surplus of $2.7 billion for the 2015-16 period, the Victorian 2015-16 Financial Report showed today.
Tabled by Treasurer Tim Pallas, the report showed state final demand as the highest in Australia, growing by 4.0 per cent in real terms in 2015-16 – the best result since 2007-08.
Together with a strong surplus, net debt was down to 5.9 per cent, below the levels inherited from the previous Liberal Government, and in line with the Labor Government’s 10-year fiscal strategy.
Net debt will fall even further with the proceeds from the $9.7 billion Port of Melbourne lease transaction, a transaction which underlined the confidence in the Victorian economy.
The final surplus of $2.7 billion – more than double the 2014-15 final result of $1.2 billion - is consistent with the strength of the Victorian economy since the Labor Government was elected, bolstered by a strong property and labour market.
Victoria’s housing sector in particular has seen robust investment. Importantly, this has been driven by improving fundamentals, with population growth a major driver.
Ours is a state of momentum, as more people continue to choose to live and invest here. Victoria’s population is now more than six million people, and our labour market has also been one of the strongest in the country.
While unemployment rose from 4.9 per cent in 2010 to 6.8 per cent in 2014 under the previous government, this Labor Government is getting Victorians back to work, with the unemployment rate down to 5.5 per cent.
Victoria remains one of two Australian states to hold a triple-A rating from both major credit rating agencies, with our finances in a strong and sustainable position.
Quotes attributable to Treasurer Tim Pallas
“Victoria is in an enviable economic position with strong surpluses, jobs growth, and a triple-A credit rating.”
“This is great news for Victorians, and will see us continuing to deliver better hospitals and schools, reliable roads and public transport, and secure jobs in growing industries for all Victorians.”
“Net debt and unemployment are both below the levels we inherited from the previous Liberal Government.”
Reviewed 19 August 2020