A legislated government debt cap will be introduced to stop wasteful spending if the Victorian opposition wins the state election in November.
An economic plan from the Liberal and Nationals parties would include placing a limit on spending to control state debt, which is predicted to hit $167 billion (US$106.9 billion) by 2025.
“This is the biggest debt of any state in Australia, and more than New South Wales, Queensland and Tasmania combined,” Opposition Leader Matthew Guy and Shadow Treasurer David Davis said in a joint statement.
“The interest bill on Daniel Andrews’ debt will reach more than $6 billion (US$3.8 billion) by 2025, that’s enough to build six Melton hospitals.”
The debt cap legislation would prohibit any government from exceeding the legislated maximum without parliamentary approval.
The opposition didn’t specify a level for the cap, saying this would be set once an accurate baseline debt level was known.
On Friday, Davis contacted the Department of Treasury and Finance requesting an urgent update on Victoria’s balance sheet.
Guy previously vowed to ditch the government’s $35 billion (US$22.4 billion) Suburban Rail Loop and instead pour the money into Victoria’s embattled health system.
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