Victoria’s Opposition has criticised the 2026–27 State Budget, arguing it confirms rising debt, higher taxes and growing financial pressure on households.
The Coalition said the Budget reflects what it described as long-term fiscal strain, pointing to projections on debt, tax revenue and interest repayments. It said the figures show a sharp increase in borrowing and ongoing costs over the forward estimates.
According to the Opposition, the Budget confirms a cash deficit of $7.7 billion despite the government’s claim of a surplus. It also highlighted that net debt is projected to rise from $21.8 billion in 2014 to $199.3 billion by 2029–30, while interest repayments are expected to increase from $2.1 billion to $11.8 billion over the same period.
Leader of the Opposition Jess Wilson said the Budget did not address underlying economic challenges. “This budget fails the basic test. It spends big, plans little, and leaves the next generation to pick up the bill.”
She said rising debt and interest costs would affect households across Victoria. “You can’t run a household like this, and you certainly can’t run a state. The enormous and growing interest bill is making life harder for every Victorian – we cannot continue on this path.”
The Opposition also pointed to broader economic indicators, including tax revenue growth from $17.9 billion to $50.2 billion by 2029–30, and argued that outcomes for essential services have not kept pace with increased spending.
“The Allan Labor Government’s cuts to regional development and agriculture show that Labor continues to ignore the needs of regional Victorians,” said Leader of The Nationals Danny O’Brien
The Coalition raised concerns about crime rates, ambulance response times, housing construction and infrastructure delivery, stating these areas have not improved despite higher expenditure.
Ms Wilson said a different fiscal approach is needed. “Victoria needs a new approach to managing the books – one that is honest about the challenges we face and clear about how we will turn things around together.”
She added that her party would focus on reducing debt and taxes. “Only my Liberal and Nationals team will deliver a responsible long-term economic plan that will stop the waste and chart a clear path to lower debt, lower taxes and to a better future.”
Leader of The Nationals Danny O’Brien said regional communities have been overlooked in the Budget. “The Allan Labor Government’s cuts to regional development and agriculture show that Labor continues to ignore the needs of regional Victorians.”
He also criticised the emergency services levy, saying households are facing higher costs. “At the same time, Victorians are hit with a $6.87 billion bill for the emergency services tax – double what they used to pay under the Fire Services Property Levy.”
Mr O’Brien said future commitments could lead to further financial pressure. “This is a bad Labor government which should tell the truth: every unfunded promise today is a tax hike or a service cut tomorrow.”
The Opposition also cited estimates showing interest repayments could reach about $1.35 million per hour by 2029–30, alongside rising per-household debt levels.
The Budget is expected to remain a central issue ahead of the state election, with both major parties outlining contrasting approaches to managing Victoria’s finances and economic outlook.
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