Overview

• The Victorian government projects a $600 million operating surplus for 2025-26, its first since before the COVID pandemic.
• State debt is forecast to rise to $188 billion by 2028 and $194 billion by 2029, with annual interest costs exceeding $10 billion.
• The budget allocates $11.1 billion in additional health funding over four years, including $9.3 billion for hospital operations and $643 million for nine hospital projects.
• Education funding commitments were deferred, with $2.4 billion stripped from schools as the government delays meeting the Schooling Resource Standard until after 2028.
• An upcoming efficiency review led by Helen Silver may cut up to 3,000 public service roles and streamline regulators, aiming to save $500 million over four years.