Economists criticise Victorian government for blaming debt on RBA

Economists have rejected an try by the Victorian authorities accountable the Reserve Bank for the state’s mounting debt.

It comes forward of the discharge of Victoria’s “tough” state price range tomorrow, which can reveal a staggering invoice to pay-off the state’s multi-billion greenback COVID-19 lockdown debt.

Daniel Andrews’ authorities will element a $31.5 billion “COVID-19 Debt Repayment Plan” to repay emergency funds borrowed on the peak of the worldwide disaster as a part of the price range, Nine newspaper The Age has reported.

Treasurer Tim Pallas did not reveal a reputation or slogan for his ninth price range. (Nine)

The authorities remained tightlipped in the present day, with Treasurer Tim Pallas not revealing a reputation or slogan for his ninth price range.

Premier Daniel Andrews has beforehand claimed the dimensions and value of Victoria’s debt is as a result of Reserve Bank growing the official money fee 11 occasions over the previous 12 months.

He stated his authorities was advised “interest rates won’t be going up” and would not have borrowed as a lot because it did on the time if advised in a different way.

Victorian Premier Daniel Andrews at a press conference on March 7, 2023. — Victorian Premier Daniel Andrews has beforehand stated his authorities was advised rates of interest wouldn’t go up. (Jason South)

But AMP economist Shane Oliver stated it was too late for the federal government accountable the RBA.

“I think is a bit over the top at this point given Victoria does have a higher debt level than other states,” he stated.

“I think we’re going to see a tough budget.

“In different phrases, there will not be a variety of handouts. If something there might be spending cuts.”

Transport and Infrastructure Minister Jacinta Allan today dodged questions about the possibility of new or increased taxes. (Nine)

Shadow Treasurer Brad Rowswell has said the Liberals are expecting “a completely brutal price range”.

“We’re absolutely anticipating Victoria’s tax take to extend … at a time when Victorians can least afford it,” he said.

“You assume issues are powerful for Victorians for the time being? It’s solely going to worsen.”

Transport and Infrastructure Minister Jacinta Allan today dodged questions about the possibility of new or increased taxes.

“The debt that was taken on on the urgency of the Reserve Bank,” she said.

“This won’t be one thing that might be affecting hardworking Victorian households. They’ve already had sufficient.”

When asked about the upcoming budget on Sunday, Victorian Health Minister Mary-Anne Thomas unwaveringly defended the government’s actions.

“We borrowed cash as a way to hold Victorians at work to maintain small business thriving and naturally to save lots of lives,” she told media.

“But now’s the time to start the payback of that… cash that is been borrowed”.

It’s believed funding for 372 expiring programs, including for road maintenance, domestic violence, disability support, will be cut as part of the plan.