The federal government has warned that Victoria’s public debt has risen significantly, with former federal treasury official Stephen Anthony calling for federal relief.
According to 2023-24 data, the debt per person in Victoria stands at $27,729.
Anthony cautions that Victoria’s borrowing is risky, especially with global interest rates nearing 5%.
Victoria currently holds the highest state debt and the lowest (AA) credit rating in the country.
In response, the federal government has provided Victoria with $3.8 billion in increased GST payments for 2024-25, while New South Wales has seen a loss of $188 million.
Additionally, there are claims that the federal government recently signed contracts for Victoria’s proposed Suburban Rail Loop project, despite expert advice warning against it.
