A Matt Guy Liberals and Nationals Government will introduce a legislated Victorian Government debt cap to fix Victoria’s economy and put an end to Daniel Andrews’ era of spiralling debt and higher taxes.
The legislated debt cap is a key plank of our Long-Term Economic Plan for Victoria, which we will release over the next eight weeks.
Stage One of the Long-Term Economic Plan for Victoria is to control debt and stop wasteful spending.
To achieve this, we will legislate a debt cap, reprioritise spending from the $35 billion Cheltenham to Box Hill rail line to fix the health crisis and audit Labor’s major projects which have blown out by more than $30 billion.
Under the Andrews Labor Government, Victoria’s debt has blown out to $167.5 billion. This is the biggest debt of any state in Australia, and more than New South Wales, Queensland and Tasmania combined.
The interest bill on Daniel Andrews’ debt will reach more than $6 billion by 2025, that’s enough to build six Melton hospitals.
This will only get worse, with more rate rises anticipated, and every one per cent increase in interest rates will cost Victorians an extra $2.55 billion in repayments.
Our debt cap will bring wasteful spending under control. There will be no new taxes. There will be no cuts – the only cuts will be to Labor’s wasteful spending.
The cap level will be set once an accurate baseline debt level is known. That’s why on Friday, Shadow Treasurer David Davis wrote to the Department of Treasury and Finance requesting an urgent update on Victoria’s current balance sheet, particularly net debt and future net debt estimates.
Once we receive advice from Treasury, have completed an audit of Labor’s troubled major projects and fully understand the state of Victoria’s finances, the Liberals and Nationals will legislate an appropriate debt cap.
Importantly, the debt cap legislation will prohibit any government from exceeding the legislated debt cap without specific parliamentary approval. It will also boost transparency, with an annual debt report to be produced and tabled in Parliament.