More growth means more jobs
Victoria's economy is growing. Our strength in the service and knowledge sectors means we can make the most of the changes in the Australian economy.
We have a strong economy, with 3 per cent growth forecast for 2016-17. But the benefits of this growth must be shared fairly.
The right investments
The Victorian Budget 2016-17 makes the right investments in jobs, infrastructure and services so that growth is strong and sustainable for all Victorians. No one will be left out.
That's why we've included up to $12.4 billion capital in this Budget for the projects that Victorians need.
These investments are financially responsible. The Budget produces an operating surplus of $2.9 billion, and surpluses averaging $2.1 billion a year over the forward estimates.
These surpluses will be delivered by ensuring average revenue growth of 3.4 per cent is greater than average expenditure growth of 3.3 per cent.
We will maintain our debt at a sustainable level, consistent with our triple-A credit rating, while still investing in the infrastructure our growing state needs. Net debt is forecast to fall from 5.9 per cent of GSP this year to 4.8 per cent by June 2020.
Taking action to keep up with the demand for services
With population growth of 1.7 per cent last year, Victoria is the fastest growing state in the nation. When growth is this strong, we need to take action to keep up with the demand for services.
Infrastructure investment will average $7.4 billion a year over the next four years, with funding for key projects in urban and regional transport, health and education.
112,600 new jobs have been created since we were elected to office, including 71,100 full-time jobs. The unemployment rate has fallen from 6.9 per cent in 2014 to 5.7 per cent in March 2016, and is projected to be 5.5 per cent by 2018-19.
Two per cent employment growth is forecast for 2015-16, and the initiatives funded in this Budget will grow the job market even more.