The key feature of the Victorian 2012-13 Budget is that it effectively extends the large savings strategy which was embarked upon in the December 2011 Budget Update. Since December 2011, projections for growth in the Victorian economy have slowed even more which has resulted in lower revenues – state taxes and GST.
Consequently, the Victorian Government has announced additional savings measures to ensure a solid operating surplus to make way for future increased infrastructure spend.
A thorough read of the Victorian Government’s policy and direction requires an understanding of the current fiscal environment, the economic context and the key policy drivers.
In this brief we will outline these policy drivers and the path the government has taken to date and where it may lead.
For a full copy of this report, please call The Agenda Group on 9615 4615.