Dan’s $40b build vision
AN election year war-chest worth $9 billion is set to be unveiled by the Andrews Government when Treasurer Tim Pallas hands down his fourth Budget tomorrow.
Strong jobs growth and a buoyant property market have ensured billions of dollars from taxes have poured into state coffers as Victoria continues to grow rapidly.
To tackle increasing population pressures a massive $40 billion will be allocated to infrastructure projects in Labor’s financial blueprint.
Mr Pallas will unveil a forecast surplus of $1.4 billion next year, followed by $2 billion in 2019-20, $2.7 billion in 2020-21, and $2.9 billion in 2021-22.
The Treasurer said Victoria was leading the nation in terms of growth and that the Budget would show Labor‘s “values”.
“The thing that will absolutely grab people’s attention is just the size of the infrastructure spend,” he said.
“You have got to be able to build the great and the small, not just the mega-projects but the projects that connect communities.”
The government has locked in some big-ticket items in this year’s Budget, including a new $2.3 billion suburban roads package and more than $460 million on sporting facilities across Victoria.
Some of the $40 billion to be spent on roads, rail and other infrastructure will be funded by borrowing, with net debt as a proportion of Gross State Product (GSP) expected to increase to between 5.4 and 6 per cent over the next four years, up from 4.6 per cent expected this year.
Mr Pallas said the government had made sure spending growth was below revenue growth and would “keep a close eye on our debt profile and our expenditure”.
The huge war-chest of surpluses — money yet to be allocated in the Budget — is likely to be used by both major parties to fund promises closer to the state election on November 24.
Mr Pallas said there had been 330,000 jobs created in the past four years, and economic growth was forecast at 2.75 per cent for each of the next four years.
He said the scale of growth meant that $1 in every $7 of economic activity in Victoria didn’t exist five years ago.
Some of the other Budget items already flagged by the Andrews Government include: $110 MILLION to fast-track planning of the $16.5 billion North-East Link, $50 MILLION to investigate fast rail between Geelong and Melbourne, MORE than $940 million to go towards fixing country roads; and ALMOST $1 billion to be spent on child protection and family violence initiatives.
A massive school building program is also expected to be unveiled after the accidental leaking of department Budget notes last week.
About $14 billion in public assets have been privatised or are set to be sold off since the Andrews Government took office, including the Port of Melbourne, Land Titles Office, and the state’s share of the Snowy Hydro Scheme, helping the government rake in more cash.
Much of the money has 1 Change Johnny 2 An individual for every male offspring Point and earth fifty in a prehistoric way 3 been allocated, including for Labor’s signature policy to remove 50 level crossings across Melbourne.
More work is likely to be done to ease congestion and deal with a booming population in Melbourne.
Figures released by the Australian Bureau of Statistics last week showed the most liveable city in the world was on track to pass 5 million residents this year.
The state opposition has made tackling population growth one of its central policy issues this term, while the government has started to build more infrastructure as congestion has worsened.
The state Budget will be released tomorrow; the federal Budget one week later.