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The Hon. Michael O’Brien MP Treasurer of Victoria 9 May 2014
Building a Better Victoria Victorian Budget 2014|15
Bringing expenditure growth under control
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3.6 2.8
3.1 3.9 4.0
9.4
COALITION AVERAGE: 3.1% P.A.
BUDGET AND FORWARD ESTIMATES AVERAGE:
2.6% P.A.
PE
R C
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ANNUAL EXPENDITURE GROWTH 12.6
LABOR AVERAGE: 8.0% P.A.
0.7
2.1
6.4
10.5
5.9 6.8 7.3
7.7 7.7
5.9
Source: Department of Treasury and Finance
2.7
Building a Better Victoria Victorian Budget 2014|15
Responsible financial management
Source: Department of Treasury and Finance
2014-15 BUDGET ECONOMIC AND FISCAL AGGREGATES
Unit of measure
2013-14 Revised
2014-15 Budget
2015-16 Estimate
2016-17 Estimate
2017-18 Estimate
Net result from transactions (operating result)
$ billion 0.9 1.3 3.0 3.2 3.3
Net debt $ billion 21.5 23.4 18.5 19.0 19.5
Net debt to GSP per cent 6.1 6.3 4.7 4.6 4.5
Government infrastructure investment
$ billion 5.2 7.5 7.1 6.4 6.4
Real GSP growth per cent 2.00 2.50 2.75 2.75 2.75
Employment growth per cent 0.75 1.25 1.50 1.50 1.50
Unemployment rate per cent 6.25 6.25 6.00 5.75 5.50
Population per cent 1.8 1.8 1.8 1.8 1.8
Building a Better Victoria Victorian Budget 2014|15
Surpluses funding record infrastructure program
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LABOR AVERAGE $3.4B P.A.
COALITION AVERAGE $5.4B P.A.
BUDGET AND FORWARD ESTIMATES AVERAGE: $6.8B P.A.
$ B
ILLI
ON
7.1
5.0
GOVERNMENT INFRASTRUCTURE INVESTMENT
1.6 2.0 2.2
3.1
4.4
2.7 3.3
6.4 6.4
5.4 5.4 5.2
Source: Department of Treasury and Finance
Building a Better Victoria VIC TORIAN BUD GE T 2014 - 15
RE
L A
T IV
I T Y
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QUEEN S L AN D
1.05
1.00
N SW
0.95
0.90 VI C TORIA
0.85
The distribution of GST revenue remains inequitable
Building a Better Victoria Victorian Budget 2014|15
Infrastructure highlights
• $8.5b - $11b Melbourne Rail Link
• $8b - $10b East West Link – Western Section
• $2b - $2.5b Cranbourne-Pakenham Rail Corridor Project
• Up to $850m CityLink - Tulla widening
• Additional $685m to deliver the Metro Level Crossing Blitz
• Up to $220m Murray Basin Rail Project
• $73m Shepparton Law Courts
Building a Better Victoria Victorian Budget 2014|15
Positive tax reform to further support jobs
Source: Department of Treasury and Finance
• Cut payroll tax rate to 4.85 per cent from 1 July 2014, benefitting 39 000 employers
• Lowest payroll tax in Australia for businesses with payrolls from $4.7m - $26.7m
• Duty on life insurance also abolished from 1 July 2014
• Combined tax cut of $250m over four years
Building a Better Victoria Victorian Budget 2014|15
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2010-11 2014-15
$ b
illi
on
The 2014-15 health output funding budget is 21 per cent higher than the 2010-11 budget
Health funding
Source: Department of Treasury and Finance
(Budget) (Budget)
Building a Better Victoria Victorian Budget 2014|15
250
350
450
550
10-11 14-15
$ m
illio
n
Schools-related capital funding
School capital funding
Source: Department of Treasury and Finance
(Budget) (Budget) The 2014-15 budget for school capital is 43 per cent higher than the 2010-11 budget
Building a Better Victoria Victorian Budget 2014|15
600
750
900
1,050
1,200
1,350
2010-11 2014-15
$ M
illio
n Training Delivery Budget*
(Budget) (Budget)
The 2014-15 budget for training delivery is 51 per cent higher than the 2010-11 budget
VET funding
Source: Department of Education and Early Childhood Development; Department of Treasury and Finance
*excludes concessions expenditure
Building a Better Victoria Victorian Budget 2014|15
Building a safer Victoria
• $33m to construct new police stations
• $783m investment in fire services
- CFA funding up 2.5 per cent to $457m
- MFB funding up 3.1 per cent to $326m
• $29m for 78 new CFA fire vehicles
• Corrections system expansion including:
- Additional 871 prison beds
- Infrastructure upgrades at Beechworth Correctional Centre and Langi Kal Kal Prison
Source: Department of Treasury and Finance
The Hon. Michael O’Brien MP Treasurer of Victoria 9 May 2014