{
  "id": 16645700,
  "title": "With an election looming, Victoria’s debt is huge. But are the state’s finances really that bad?",
  "url": "https://urgent.news/2026/10/26/with-an-election-looming-victorias-debt-is-huge-but-are-the-states",
  "topic": "world",
  "section": "World",
  "published": "2026-10-26T17:22:27.000Z",
  "source": {
    "name": "The Conversation AU",
    "slug": "the-conversation-au",
    "url": "https://theconversation.com/with-an-election-looming-victorias-debt-is-huge-but-are-the-states-finances-really-that-bad-294671"
  },
  "original_language": "en",
  "account": "As Victoria heads to the polls on November 28, following 12 years of Labor leadership, opinion polls suggest a potential shift in government. The state's financial troubles often serve as justification for this change. However, the picture is more nuanced than commonly believed.\n\nIn recent years, Victoria's financial position has improved. For instance, the state government recently achieved an operating surplus of $2.4 billion in 2025-26, surpassing South Australia's modest surplus of $189 million and standing in stark contrast to Queensland's $8.8 billion deficit and New South Wales' $3 billion deficit. Over the next four years, Victoria's net debt is projected to grow by around $39 billion, or 24%, which is similar to projected growth in New South Wales.\n\nCritics point to the $161 billion net debt, a substantial increase from $150 billion over the past decade. This surge in debt is partly attributed to infrastructure spending, which increased significantly from 2018. The government borrowed $30 billion during the pandemic to support citizens.\n\nDespite these challenges, Victoria's assets significantly outweigh its liabilities. With assets valued at $465 billion compared to total liabilities of $268 billion, the state's financial situation is relatively strong. This asset surplus is a key reason why Victorians should not be overly concerned about the state's finances.\n\nWhile there are concerns about the government's financial management, it is crucial to note that debt is not inherently negative. In fact, businesses and households collectively hold over $6 trillion worth of debt, with assets far surpassing these liabilities. For Victoria, it's about striking a balance between spending and managing debt prudently in anticipation of future economic fluctuations.\n\nDespite these financial achievements, the Labor government faces criticism for its handling of certain policies, such as free public transport and car registration rebates. This has led to calls for change. Upcoming issues of contention include potholes, high-rise developments, and an increase in crime rates, all of which pertain more to good governance than financial management.\n\nIn conclusion, while Victoria faces challenges, its financial management is not as dire as some portray. The focus on debt should not overshadow broader issues of governance and economic foresight.",
  "summary": "Victoria’s debt gets a lot of bad press. But the state has made progress in repairing its finances, and in some other states, debt is now growing much faster.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "ABC News AU",
        "title": "Melbourne Cup Day the last chance to enrol to vote in Victoria's election",
        "url": "https://urgent.news/2026/10/26/melbourne-cup-day-the-last-chance-to-enrol-to-vote-in-victorias",
        "published": "2026-10-26T18:10:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}