Vic: Budget to pay for promises

AAP General News (Australia)
04-30-2007
Vic: Budget to pay for promises

By Kate Lahey

MELBOURNE, April 30 AAP - The Victorian government is expected to start fulfilling
its billions of dollars' worth of election promises in tomorrow's budget, including a
large boost to schools.

But the opposition warns the treasurer is using too much debt to subsidise capital works.

The government has promised to spend $1.9 billion replacing school buildings over the
next four years.

In health, it promised $1.68 billion, including $476 million for emergency departments,
$115 million for two new dedicated elective surgery centres, $265 million for country
services, and millions more for new and redeveloped hospitals.

This week, the government announced some of the measures that will feature in the budget,
including an extra $10 million over four years for youth mental health, a $53 million
boost to maternity services and nearly $22 million for a major school rebuilding program
in Melbourne's north.

It also announced $30.2 million for equipment for people with disabilities and a $177
million reduction in stamp duty for motorists on vehicles priced between $35,000 and $57,000.

Treasurer John Brumby has indicated there will be new money for businesses to tackle
climate change and for water infrastructure.

Opposition treasury spokesman Kim Wells says the government should pay for a desalination
plant and new dams.

But Mr Brumby has ruled out making an announcement on desalination in the budget and
says new dams are contrary to Labor's policy.

The drought has dented Victoria's economic growth by up to one per cent but the budget
will predict a slightly stronger rate in 2007/08, higher than 2.75 per cent and partly
conditional on average rainfall, Mr Brumby said.

The budget surplus has settled down from the mid-year report of $910 million, closer
to the $374 million forecast, Mr Brumby said.

He said government sector net debt would rise. It is predicted to pass $3 billion but
the treasurer argues it will remain low as a share of gross state product, between 1.2
and 1.5 per cent, in line with a triple-A credit rating.

Mr Wells said rising debt was a symptom of Labor's poor financial management and needed
to be controlled.

"Victoria is paying more from the bankcard, it's not acceptable," Mr Wells said.

Mr Brumby told reporters tax cuts would be "unusual" in the first budget of a new term.

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KEYWORD: BUDGETVIC PREVIEW

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