Victorian government injects millions into healthcare ahead of state budget

Australia Broadcast Center

19-05-2025

The Victorian government will inject more funding into the state's troubled healthcare system in a bid to make it cheaper and more accessible.
With the 2025 state budget due to be handed down later today, the government has announced a $634.3 million package to open nine new or expanded hospitals.
These include the Footscray Hospital, Frankston Hospital and Maryborough and District Hospital.
More money will also be invested into Urgent Care Clinics across the state and pharmacists will be able to treat more conditions, with consultations free of charge.
"We are working to ensure our hospitals have the funding that they need in order to meet the needs of Victorians," said Health Minister Mary-Anne Thomas.
The Victorian government has been working hard to paint a rosy picture of the state's finances ahead of its release.
But despite promising an operating surplus, experts have warned years of rising state debt is still a threat to the bottom line.
"It's pretty obvious the Victorian budget is under pressure, we've seen debt is rising quite significantly," said the Grattan Institute's public policy and economics expert, Trent Wiltshire.
It will be Jaclyn Symes's first budget as treasurer which the premier said will deliver a $600 million operating surplus down from the $1.6 billion forecast in December.
"[Tuesday's] budget will confirm the first operating surplus of the state of Victoria since the pandemic," Premier Jacinta Allan said on Monday, while touring the yet-to-open Parkville station.
"We committed to a budget surplus and that is what we are delivering."
Shadow Treasurer James Newbury said it was misleading.
"They were $1 billion out. If they get it a billion dollars wrong again this year, they're going to be in a $400 million deficit," he said.
This year's budget is expected to focus on cost-of-living measures, helping families and working people.
It has been labelled "responsible" by Ms Symes who said there will be a tapering off of the government's infrastructure investment and no new taxes.
"We have been responsible. We've made tough decisions but we've made the right decisions because we have been focused on the priorities of Victorians," she said.
While no new taxes have been promised, a controversial Emergency Services and Volunteers Fund passed parliament just last week.
The state's net debt is expected to rise with the latest update suggesting it could reach $187 billion by 2027-28.
Mr Wiltshire said it was clear the budget was under pressure and debt was rising significantly.
"The government is still spending quite a bit on a whole range of things," he said.
"I think they need to have a clearer strategy about what the state needs in terms of how we boost productivity."
Despite rolling out promises of free public transport for children under 18, and seniors on weekends, the treasurer warned the budget would include tough decisions.
Among those tough decisions, thousands of public sector jobs are expected to be cut.
"It will not be exactly evident about the jobs that will go ... because we want to make sure we're having those discussions with department secretaries," Ms Symes said.
But experts have urged the government to go further and cut back on major infrastructure projects.
"Particularly the Suburban Rail Loop (SRL)," Mr Wiltshire said.
"We think the government should either pause or cancel that project given the limited benefits and the likelihood of big cost rises there."
The government has made it clear that the SRL would be here to stay meaning savings would have to be found elsewhere.