MELBOURNE, 5 May, 2026: Victoria’s 2026–27 budget delivered today (5 May, 2026) is mainly a cost-of-living package, with cheaper public transport, more health funding, and housing support, while the state also returns to an operating surplus. At the same time, debt keeps rising, so the budget mixes relief now with continued fiscal pressure. The government claims, ” This budget delivers record total investment in health, more new and upgraded schools, and more investment to keep Victorians safe.”
Leader of opposition, Jess Wilson MP in a media statement emailed to South Asia Times (SAT) says, ” This is a budget of higher debt, higher taxes, higher interest repayments, blowouts and delays and lacks any plan to grow our economy or provide meaningful support to Victorians. It is full of excuses and no solutions.”
At the budget media lockout at the Investment Centre, city, Treasurer Jaclyn Symes MLC detailed the main points of the budget indicating help with the cost of living, making it easier to get healthcare, delivering quality public education, and keeping the community safe.
Despite global economic pressures, the government has kept the economy resilient – with consistent economic growth, meaning the economy is now estimated to be almost 15 per cent larger in real terms than 2018-19, she said.
She added, ” The net debt as a share of the economy will be lower in four years’ time than it is today.”
Premier Jacinta Allan went round the media tables talking to journalists and answering queries. Talking to South Asia Times (SAT) about the emphasis on multicultural communities she said, the budget will make life easier,,safer and more affordable for multicultural and multi-faith communities in Victoria.
The Australian Broadcasting Corporation reports, “Business bodies in Victoria have expressed significant concern regarding the 2026-27 state budget, primarily warning that high debt levels and unchecked spending on “pre-election handouts” risk damaging long-term economic growth.While many welcomed the absence of new major taxes, industry leaders argued that the budget fails to provide sufficient relief for the challenging operating environment businesses are currently facing.”
Key takeaways of the budget:
-The budget focuses on easing everyday expenses.
-Victoria is projected to post an operating surplus of about $727 million in 2025–26 and around $1.05 billion in 2026–27.
-Big spending areas include half-price public transport for the rest of 2026, a $1.6 billion health boost, and extra housing support through social housing funding.
-The trade-off is higher debt, which is forecast to keep climbing over the forward estimates.
