Victoria Records Surplus, but Eyes Ballooning $194 Billion Debt Forecast

Health, housing, education and transport spending rise, while infrastructure is pared back, and public service roles are slashed.

People enjoy outdoor dining at Lobbs Cafe in trendy Brunswick north of Melbourne CBD in Australia on Oct. 22, 2021. Darrian Traynor/Getty Images

Victoria has recorded a modest $600 million operating surplus—the first since the pandemic—but taxpayers are still staring down the barrel of ballooning net debt now forecast to hit $194 billion by June 2029.

That’s an increase from the $167.9 billion projected for 2025–26, with debt servicing costs alone rising from $21 million to $29 million a day by 2027–28.