Victoria maintains the worst credit rating of any state in Australia, following the annual post-budget review by global Ratings Agency S&P.
S&P have warned they could lower the credit rating if Victoria's financial management further weakens, stating: "This could occur if fiscal metrics underperform our forecasts with persistently weak operating margins, large cost escalations of projects, or rising debt and interest costs".
Legitimate concerns have been raised about the Allan Labor Government's Suburban Rail Loop, with S&P stating: "We believe there is an elevated risk this project will cost more than the latest government forecasts, given the size and complexities of the undertaking, concerns raised by the Victorian Auditor-General's Office and Victorian Ombudsman in the planning and costings, and recent history of major state projects going well over budget."
Only a Liberals and Nationals Government will address the continued deterioration of Victoria's finances under Labor. A future Pesutto Government will:
- Legislate a Victorian debt cap
- Undertake a wholesale review of Victoria's tax system
- Establish a Victorian Productivity Commission
- Establish Construction Enforcement Victoria
- Review all major projects, including the Suburban Rail Loop
Shadow Treasurer, Brad Rowswell, said: "S&P has confirmed what every Victorian already knows – Labor cannot manage money, cannot manage major projects and Victorians are paying the price.
"After 10 years of Labor and 10 Labor budgets, life is getting harder for Victorians through Labor's record debt and record taxes. Every Victorian should be concerned about what Labor will tax next.
"Victorians should have no confidence that Labor will take heed from S&P's warnings. The sad reality is that over the next two years Victorian should brace for more cuts to frontline services as well as higher taxes."
