The state of Victoria’s financial woes is well documented.
In 2023-24, the state had the nation’s largest per capita net debt and the lowest credit rating (AA).
Per capita state debt was only $3,600 in Labor’s first budget in 2015. It has since climbed to $21,900 and is projected over the budget forward estimates to hit $25,500 by 2028-29.
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Victoria is currently paying $959 in annual interest costs per capita. By 2028-29, Victoria’s interest bill is projected to hit $1,391 per capita.
The two top international rating agencies, S&P and Moody’s, have warned that if debt levels are not rectified, Victoria’s credit rating may be further lowered.
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Further downgrades appear unavoidable, given that the Victorian…