ID :
58885
Tue, 05/05/2009 - 04:47
Auther :
Shortlink :
http://m.oananews.org//node/58885
The shortlink copeid
Vic budget to boost transport, schools
(AAP) Transport and schools are set to be among the big winners in Tuesday's Victorian budget as the government throws money at major projects to prop up the flagging economy.
But with $2 billion slashed from state coffers, the government will plunge deeper
into debt to deliver its promised jobs-building budget.
Net debt is expected to balloon to $16 billion by 2012, or five per cent of gross
state product, up from last year's forecast of $9.5 billion.
Delivering the Brumby government's toughest budget yet, Treasurer John Lenders will
outline for the first time the full impact of the global financial crisis on the
state's economy.
The government is still expected to post a surplus, but at the last update it had
been savaged from a projected $828 million to just $46 million.
Unemployment is tipped to climb to almost eight per cent, with another 50,000
Victorians set to lose their jobs next financial year.
Despite the difficult times, Victorians can expect no tax breaks in the budget.
Spending is expected to centre on the government's $38 billion transport plan, with
$4 billion believed to be allocated for road and rail projects in 2009-10.
Among them are the $562 million South Morang railway extension and $400 million for
the first phase of the $1.9 billion metropolitan ring-road.
In a pre-election announcement on Monday, Premier John Brumby committed $402 million
to building projects at 113 schools across the state.
Mr Brumby has repeatedly denied Victoria is headed for a recession and has committed
to keeping the budget at least $100 million in surplus.
Talking up the state's economic credentials, he rejected claims by the ANZ bank that
Victoria is in danger of losing its triple-A credit rating because of falling
revenue and burgeoning debt.
"The numbers are wrong and their revenue numbers are wrong, as a consequence the
conclusion is wrong," the premier said.
"I've said it will be a jobs-building budget, it will have the biggest capital works
program in our history and you'll see that it is a strong, triple-A rated budget."
Mr Brumby said that while unemployment would rise, the budget would generate new
jobs across Victoria.
And he said the state was well placed to be "first out of the blocks" when the
global economy recovers.
Opposition Leader Ted Baillieu said the government must balance infrastructure
spending with reducing debt.
"We've got soaring debt levels, falling revenues, failing services and inadequate
infrastructure and John Brumby's line is it's all good news," he said.
"It's nonsense."
But with $2 billion slashed from state coffers, the government will plunge deeper
into debt to deliver its promised jobs-building budget.
Net debt is expected to balloon to $16 billion by 2012, or five per cent of gross
state product, up from last year's forecast of $9.5 billion.
Delivering the Brumby government's toughest budget yet, Treasurer John Lenders will
outline for the first time the full impact of the global financial crisis on the
state's economy.
The government is still expected to post a surplus, but at the last update it had
been savaged from a projected $828 million to just $46 million.
Unemployment is tipped to climb to almost eight per cent, with another 50,000
Victorians set to lose their jobs next financial year.
Despite the difficult times, Victorians can expect no tax breaks in the budget.
Spending is expected to centre on the government's $38 billion transport plan, with
$4 billion believed to be allocated for road and rail projects in 2009-10.
Among them are the $562 million South Morang railway extension and $400 million for
the first phase of the $1.9 billion metropolitan ring-road.
In a pre-election announcement on Monday, Premier John Brumby committed $402 million
to building projects at 113 schools across the state.
Mr Brumby has repeatedly denied Victoria is headed for a recession and has committed
to keeping the budget at least $100 million in surplus.
Talking up the state's economic credentials, he rejected claims by the ANZ bank that
Victoria is in danger of losing its triple-A credit rating because of falling
revenue and burgeoning debt.
"The numbers are wrong and their revenue numbers are wrong, as a consequence the
conclusion is wrong," the premier said.
"I've said it will be a jobs-building budget, it will have the biggest capital works
program in our history and you'll see that it is a strong, triple-A rated budget."
Mr Brumby said that while unemployment would rise, the budget would generate new
jobs across Victoria.
And he said the state was well placed to be "first out of the blocks" when the
global economy recovers.
Opposition Leader Ted Baillieu said the government must balance infrastructure
spending with reducing debt.
"We've got soaring debt levels, falling revenues, failing services and inadequate
infrastructure and John Brumby's line is it's all good news," he said.
"It's nonsense."
