The Victorian Government has released its  Economic and Financial Statement, April 2011 provides an update  on Victoria’s finances.

 

Premier Ted Baillieu said the report showed that Victoria’s finances will experience a downward revision of more than $5 billion as a result of at least $2 billion in capital cost blowouts inherited from the Labor Government, a $2.5 billion GST revenue cut and a $550 million deferral of project funding by the Gillard Government.

 

Treasurer Kim Wells said there were massive black holes in a series of major projects and programs that the Brumby Labor Government knew about and hid from the Victorian public.

 

“New projects where the Brumby Labor Government under-funded or chronically mismanaged projects leading directly to cost blowouts are still emerging, and this conservative estimate in the order of $2 billion may be revised upwards,” Mr Wells said.

 

Mr Baillieu said the government had introduced a rigorous process to ensure that major projects would now have proper governance, management, design and financial costing to ensure that these projects were delivered on time and on budget.

 

“These projects are in such a mess they need to be put onto a solid and responsible financial footing,” Mr Baillieu said.

 

Mr Wells said the government had been working through an expanded budget process to identify program areas that had been mismanaged or under-funded by the Brumby Labor Government, and to prioritise and properly fund key service delivery areas.

 

Victoria’s revenue will also be impacted upon by a $2.5 billion cut to Victoria’s GST revenue and a $600 million deferral of payments by the Gillard Government.

 

The Victorian Economic and Financial Statement, April 2011 can be viewed at www.dtf.vic.gov.au