Victorian Budget 21/22

Our recovery

As a result of the Victorian Government’s strong fiscal and economic management, Victoria was in a sound financial position before the pandemic.

Family talking on footpath

This allowed us to support Victorians when it mattered most.

The 2020/21 Budget invested $29.2 billion in output initiatives and $19.8 billion in capital investments, creating the largest capital program in our state’s history. Through this investment, we helped to keep Victorians in jobs and provided support to families and businesses struggling during the pandemic.

We are already seeing this investment pay off, with our economy rapidly recovering and Victoria emerging from the pandemic even better than we could have hoped.

This Budget continues to make the targeted investments Victoria – and Victorians – need.

These investments will drive our state’s recovery by focusing on the fundamentals – rebuilding our mental health system, supporting families and children, investing in our schools and hospitals, and continuing our build of road and rail.

At the same time, we’re making sure every dollar of investment delivers a double benefit – making Victoria stronger, and putting Victorians to work to make it happen.

In 2020, like all states and territories, the pandemic severely impacted Victoria's financial position and outlook.

But we are well on the path to recovery.

As we set out in last year's Budget, our medium-term fiscal strategy is:

Step 1: Creating jobs, reducing unemployment and restoring economic growth

Step 2: Returning to an operating cash surplus

Step 3: Returning to operating surpluses

Step 4: Stabilising debt levels

We have made good progress on Step 1, and with this Budget, we’re ensuring we don’t take our foot off the pedal.

Our forward estimates also show we’re on the way to achieving Step 2 – with an operating cash surplus of $1.1 billion now forecast in 2022-23.

We’re working towards balancing the Budget by investing carefully, and by strengthening the state’s revenue to ensure we can keep investing for the future.

With strong, balanced and responsible financial management, we’re securing our state’s recovery. Even more importantly, we’re securing our people’s recovery too.

This Budget and this Government are investing in the plan and projects Victoria needs – and the Victorians we need to deliver them.

General government fiscal aggregates

Source: Department of Treasury and Finance

Media release

Building a better Victoria, backing our economy

Reviewed 20 May 2021

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