Overview

• The Victorian government has revised its 2025–26 operating surplus forecast to $600 million, $1 billion lower than the $1.6 billion projected in December's mid-year update.
• Key budget measures include $5 billion for public transport, $727 million for prisons, and free weekend public transport for seniors and children under 18.
• Victoria’s total debt is expected to reach $168.5 billion this financial year and grow to $187.3 billion by 2027–28, prompting concerns from economists and credit ratings agencies.
• Treasurer Jaclyn Symes has commissioned a public sector spending review led by Helen Silver, with interim recommendations expected to influence the budget and a final report due in June.
• Critics warn that infrastructure spending, including the Suburban Rail Loop, risks diverting funds from health and education, as seen in delayed Gonski funding and rejected health service amalgamations.