dailyloe.com – Victoria’s 2026-27 budget, set to be announced on Tuesday, reveals a $700 million surplus for the 2025-26 financial year. This marks Victoria’s first surplus since the Covid-19 pandemic began, as the state recorded its last surplus of $1 billion in 2018-19.
Treasurer Jaclyn Symes indicated that the surplus aligns closely with the pre-budget update of $710 million and improves upon the $611 million forecast from last May. The government is also projecting a $1 billion surplus for 2026-27, down from a previous estimate of $943 million.
The budget is the last one before the upcoming state election in November, with average surpluses of $1.7 billion projected across the forward estimates. Symes stated, “Labor’s budget is in surplus while continuing to invest in the frontline services Victorians rely on.”
In contrast, opposition leader Jess Wilson criticized the government for not presenting a “real” surplus. She highlighted that the headline operating surplus does not account for significant infrastructure spending, which includes investments in roads, schools, and hospitals.
Wilson suggested that the operating surplus does not address the total debt situation, stating, “It does nothing to manage the debt bomb that is running under this government.” The December budget update projected a cash deficit of $9.68 billion for 2025-26, declining to $7.3 billion in 2026-27 and $6.8 billion in 2027-28, before increasing to $8.1 billion in 2028-29.
Net debt is expected to reach $165.8 billion by June 2026, rising to $192.6 billion by 2028-29, while stabilizing at approximately 25% of the economy. The government did not disclose figures for capital spending prior to the upcoming budget announcement.
