Labor Delivers Strong Economy, Budget Surpluses

Photo: Brookings Institution

The Pre-Election Budget Update (PEBU), released by the Department of Treasury and Finance, shows Victoria’s economy has grown strongly since Labor came to office in 2014, and that Labor has delivered budget surpluses every single year.

This is in stark contrast to when the Liberals were last in Government – Victoria’s economy stagnated, our unemployment was the worst on the mainland, and there were cuts to schools, hospitals, and public transport, including in regional Victoria.

Labor has turned this around, with sound economic management, the right investments, and the commitment to deliver for all Victorians.

Since the Labor Government was elected in 2014, more than 390,000 jobs have been created – the largest percentage increase of any state in the country. Victoria’s unemployment rate of 4.5 per cent is a full 2.2 percentage points below that inherited from the Liberals.

PEBU also confirms that the government’s average annual infrastructure investment remains at over $10 billion a year – more than double the long-term average – as the Labor Government continues to invest in the things that matter to Victorians.

The 2018/19 projected surplus is $2.3 billion, rising to approximately $3 billion by the end of the forward estimates.

Net debt as a percentage of gross state product (GSP) is no higher than 6 per cent over the forward estimates and lower than the level inherited from the former Liberal Government.

Employment and economic growth have both been revised up to 2.5 per cent and 3 per cent respectively in 2018-19, consistent with the strong economy and jobs growth that has been a consistent feature of the last four years.

The Pre-Election Budget Update is published by the Department of Treasury and Finance in accordance with reporting requirements under the Financial Management Act.