Victoria 2 wiki debt
Treasurer Tim Pallas is backing a record infrastructure spend by Labor in Victoria.
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"Recognising that large capital spending programs will typically be phased in over the longer term, as well as productivity improvements that should support additional revenue growth", Moody's said the debt increase "will not result in a material change in Victoria's credit profile". "The increased borrowings applied to productivity enhancing infrastructure such as roads, rail and transport, in addition to the current record infrastructure pipeline as announced in the fiscal 2019 budget," Moody's said. The government has multiple ways to defray the debt load on major infrastructure projects, including using public-private partnerships and selling off the tolling rights on the $16 billion North East Link outer ring road project. The bank said it remained unclear exactly how much the new infrastructure projects would increase debt because "the total project spends relate to unspecified periods of time, part of the funding is already included in the budget and some projects are funded outside the general government sector". ANZ, Moody's judge debtīut analysis by ANZ senior economist Cherelle Murphy for the Financial Review reveals the figure most closely watched by ratings agencies - whole of government debt - is expected to reach $80 billion over the same period, presuming the debt ceiling is reached.ĪNZ said the debt binge would put Victoria "close to the top" of the state and territory net debt charts. Labor claim that net debt to GSP will only increase by about 1 per cent or $5 billion each year to reach $49.3 billion for non-financial public sector debt over the next four years. The Australian Financial Review calculated total debt would rise to more than $60 billion, based on forecasts in the May budget that net debt was already on track to reach $36 billion. The new borrowing comes on top of $78 billion of spending on major projects promised or committed in the May 1 budget, which included $10.9 billion for the Melbourne Metro Tunnel, $5.5 billion for the West Gate Tunnel Project and $6 billion to remove rail level crossings. He revealed last Thursday Labor would borrow $25.6 billion to build new major projects, including the $15 billion Airport Rail Link, $15.8 billion North East Link and $6.6 billion for 25 more level-crossing removals. The budget is expected to remain in surplus despite taking a $2.4 billion hit from the property slowdown. On Tuesday, the Treasurer was trumpeting a report by credit agency Moody's that confirmed the state's triple-A credit rating and found the increase in borrowing was "manageable".
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Victorian Treasurer Tim Pallas says Moody's have given his spending a big tick. Treasurer Tim Pallas came under fire after revealing 48 hours before the election the state's long-standing debt ceiling would be doubled from 6 per cent to 12 per cent of gross state product to accommodate a record $80 billion-plus pipeline of major project spending. A debt blow out for Victoria's Andrews government is expected to reach $80 billion within four years, according to analysis by ANZ Bank.Įconomists and ratings agencies claim the higher-than-expected debt - a focus for critics in the wake of Labor's landslide re-election - can be managed, so long as the money is spent on revenue raising infrastructure and funded with public private partnerships.