The Hon Tim Pallas MP
The Hon Tim Pallas MP Treasurer of Victoria
In May, when I handed down the 2016–17 Victorian State Budget, I presented an economic plan for the year and, indeed, for the remainder of this term of government. It was a plan focused on three key pillars: • bolstering our financial position • delivering infrastructure that drives productivity and growth • investing in the Victorian people to ensure that our communities are safe, and our living standards remain the envy of the world. The Economist might have crowned Melbourne the world’s most livable city for the sixth year running, but the challenge for our government is to ensure that we keep investing and growing with an eye on the future. When the Andrews Labor Government was elected, we were clear about what Victoria needed – a pipeline of economic activity that creates jobs and grows the Victorian economy. Since then, the economy has generated more than 150,000 jobs; economic growth is running at three per cent; and work continues at a great pace on a strong infrastructure pipeline. In fact, Victoria’s employment growth leads the nation. This optimistic outlook is a vindication of our policies over the last two years, and is the logical result of an economy that continues to exceed growth forecasts.
Key points: • Transport is at the centre of Victoria’s infrastructure – funded principally through the $10 billion lease of the Port of Melbourne. • The risk allocation and value for money from Public Private Partnerships (PPPs) sees private finance being expanded. • Victoria is committed to recycling taxpayer’s funds to fund new infrastructure, from surplus government businesses and assets that do not need to be public.
Victoria’s economic fundamentals are strong indeed. Victoria’s real gross state product (GSP) grew 2.5 per cent last year after two years of anaemic growth. Not only that, but GSP is forecast to grow three per cent in both 2015–16 and 2016–17. The strength of the Victorian economy is also reflected in the June quarter national accounts, which show Victoria’s annual state final demand growth to be the highest of all the states. Victorian state final demand has now increased for seven consecutive quarters. Volume 7 Number 1
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