Tuesday, 9 December 2025

 Gaelle BROAD (Northern Victoria) (12:32): (1187) My question is to the Treasurer. The Victorian Auditor-General’s Report on the Annual Financial Report of the State of Victoria: 2024–25 says:

The higher interest rates are projected to add over $4.0 billion to the … interest bill over the next 4 years, on top of the increasing costs from new borrowings.

Will the Treasurer admit that every dollar saved under the Silver review will be wiped out by higher interest payments?

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:33): I thank Mrs Broad for her question. As was confirmed by the VAGO report, government borrowing since 2020 has funded a range of amazing investment. So not only have we responded to COVID to protect Victorians and the economy, we have successfully navigated the pandemic and made sure that the economy can bounce out of that with stronger economic growth than any other state. Mrs Broad, when we talk about the VAGO report, it is a really good reference point for the state’s finances and the important investments that we may need to take.

Members interjecting.

The PRESIDENT: Order! The Treasurer to continue without people yelling.

Jaclyn SYMES: But also it is a reminder of why we have a fiscal strategy and why we have a disciplined approach to ensuring that we will be delivering a surplus this year – a $700 million surplus – more than what was forecast at budget time. So, Mrs Broad, there will always be a need for a government who is interested in the services that Victorians rely on to fund the frontline services, to ensure that we are looking after those that are vulnerable, those that are struggling with the cost of living. That is what the budget this year is all about, and that is what you can see in both the VAGO report and the budget update I released on Friday.

 Gaelle BROAD (Northern Victoria) (12:34): The Auditor-General also said ‘a higher and unsustainable level of public debt can pose a significant risk to future prosperity and economic stability’. Why is the Treasurer putting the future prosperity and economic stability of Victoria at risk because of Labor’s failure to manage money?

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:34): Thank you, Mrs Broad. While I reject the premise of your supplementary question and it did not necessarily coincide with your substantive question, I come back to: we have a strong economy, and we have a budget that is in surplus for the first time since the pandemic. We will be delivering a surplus when no other state on the eastern seaboard is doing that. We will be the only one. The Commonwealth are not able to do that. As I have continued to remind the house, we have a fiscal strategy which has five steps. We are up to about step 3. Step 4 is about stabilising net debt as a proportion of the economy. Then it is about reducing net debt as a proportion of the economy. This is a strategy that is working. It is the right strategy for Victoria. It is why we have ratings agencies that recognise our stability and have confirmed our ratings. But what I would say is that you talk about risk. The risk to the Victorian economy, to Victorian people, is an $11.1 billion black hole that the alternative government have basically promised they will smash Victorians with.