Victoria Produces Budget Surplus Of $517 Million For Year 2010/11

Victoria Produces Budget Surplus Of $517 Million For Year 2010/11

Victoria Treasurer Kim Wells

Coalition Delivers Strong Result For 2010/11 Financial Year In Challenging Times

Victor P Taffa

The 2010/11 Annual Financial Report tabled in Parliament today by Treasurer Kim Wells shows that the Victorian general government sector recorded a strong net surplus of $517 Million for the 2010/11 financial year.

Mr. Wells said confidence in Victoria’s economy remains strong and the state is performing well on a range of key economic indicators including job creation, building approvals, retail sales and private investment.

“Victoria’s economy remains resilient despite the high levels of economic uncertainty caused by concerns for key international economies, a weaker national economy, the high Australian dollar, and the looming carbon tax.” Mr. Wells said.

The weaker national economy in the course of the year translated into a $512 Million reduction in Victoria’s GST revenue for 2010/11.

The floods of late 2010 and early 2011 affected more than 20 % of the state and the government is committed to supporting affected communities to recover and rebuild.

Mr. Wells said the government has committed significant funding for community flood recovery and to build greater capacity to respond to future emergencies.

The 2010/11 financial results include the balance of a Commonwealth flood recovery payment allocated for expenditure in 2011/12, and excluding this payment, the net result from transactions for the general government sector would have been a surplus of $118 Million.

Mr. Wells said the 2010/11 financial result included savings of $164 Million achieved through the Coalition’s $2.2 Billion savings plan to cut government waste and duplication, including reductions in advertising, consultancies and ministerial staff.

“The Coalition Government is implementing a clear plan to repair Victoria’s finances after eleven years of Labor’s cost blow-outs on major projects and unsustainable expenditure growth that relied on revenue windfalls from the Commonwealth and the Victorian community.” Mr. Wells said.

“The government is also delivering a number of initiatives to grow Victoria’s economy and create jobs through major investments in infrastructure to grow productivity, through reducing business costs, attracting new business investment, and expanding Victoria’s export industries.” Mr. Wells said.

In 2011/12 the Coalition Government is making a record investment in infrastructure and important services for the Victorian community including health, education and community safety.

“The external economic conditions that influenced the 2010/11 financial result remain, however the Victorian economy is continuing to perform strongly and the Coalition Government is delivering strong financial management to achieve its financial objectives.” Mr. Wells said.