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Building a Better Victoria Victorian Budget 2014|15 Building a Better Victoria Budget Overview Contents 01 Budget at a glance 02 Strengthening Victoria’s finances 03 Building a stronger Victorian economy 04 State-shaping infrastructure to build a better Victoria 05 State-shaping infrastructure to build a better Victoria – Rail 08 State-shaping infrastructure to build a better Victoria – Integrating road and rail 09 State-shaping infrastructure to build a better Victoria – Road 10 Victoria’s infrastructure program 12 I nvesting in our future – Boosting skills, education and training 13 Strengthening health care and community services 14 Building a better regional Victoria 16 Building a safer Victoria The Secretary This publication makes reference to the This work, 2014-15 Budget Overview, is Department of Treasury and Finance 2014-15 Budget Paper set which includes: licensed under a Creative Commons Attribution 1 Treasury Place Budget Paper No. 1 – Treasurer’s Speech 3.0 Australia licence. You are free to re-use the work under that licence, on the condition that Melbourne Victoria, 3002 Budget Paper No. 2 – Strategy and Outlook you credit the State of Victoria (Department of Australia Budget Paper No. 3 – Service Delivery Treasury and Finance) as author and comply Telephone: +61 3 9651 5111 Budget Paper No. 4 – State Capital Program with the other licence terms. The licence does Facsimile: +61 3 9651 2062 Budget Paper No. 5 – Statement of Finances not apply to any images, photographs or Website: budget.vic.gov.au (incorporating Quarterly Financial Report No. 3) branding, including the Victorian Coat of Arms, the Victorian Government logo and the Authorised by the Victorian Government © State of Victoria 2014 Department of Treasury and Finance logo. 1 Treasury Place, Melbourne, 3002 Printed by Impact Digital, Brunswick Copyright queries may be directed to [email protected] ISSN 1440-6969 Published May 2014 Printed on recycled paper Budget at a glance STRONG ECONOMY, STRONG SURPLUSES, MAJOR NEW JOB-CREATING INFRASTRUCTURE BUILDING A BETTER VICTORIA UP TO MELBOURNE RAIL LINK INCLUDING AIRPORT RAIL LINK 30 MORE PEAK-HOUR SERVICES $ INCREASE NETWORK CAPACITY BY 30 PER CENT 27BILLION 3 NEW STATIONS RECORD STATE-SHAPING – MELBOURNE RAIL LINK INFRASTRUCTURE INVESTMENT – THE CRANBOURNE-PAKENHAM RAIL TO BETTER INTEGRATE VICTORIA’S CORRIDOR PROJECT RAIL AND ROAD NETWORKS, – EAST WEST LINK – WESTERN SECTION AND SOCIAL INFRASTRUCTURE – NEW SCHOOLS AND UPGRADES INFRASTRUCTURE $ $1.2 BILLION INVESTMENT IN REGIONAL 3.3 DEBT INFRASTRUCTURE, INCLUDING: BILLION NET DEBT OF 6.3 PER CENT OF GROSS $ 2017-18 3.0 STATE PRODUCT IN 2014-15 FALLING PRINCES BILLION 2015-16 TO 4.5 PER CENT IN 2017-18 $ HIGHWAY WEST 362 DUPLICATION $1.3 $3.2 MILLION PROJECT BILLION BILLION $1.4 BILLION IN NEW HEALTH 2014-15 2016-17 SPENDING OVER FOUR YEARS $ $ OPERATING SURPLUS OF 180- 220 MILLION MURRAY BASIN RAIL $1.3 BILLION IN 2014-15 PROJECT GROWING TO $3.3 BILLION SCHOOLS IN 2017-18 FUNDING MAJOR LATROBE REGIONAL INFRASTRUCTURE PROJECTS $ HOSPITAL 73 REDEVELOPMENT $ MILLION JOBS AND TRAINING BARWON 2.8BILLION $ HEALTH-NORTH 28 FACILITY INITIATIVES AND GROWTH MILLION $ OVER FIVE YEARS MORE FRONTLINE SERVICES SHEPPARTON 1.2 COURTS PRECINCT BILLION CONTRIBUTING TO THE COALITION $ PER YEAR GOVERNMENT’S COMMITMENT 73MILLION FUNDING FOR VOCATIONAL EDUCATION OF $5.4 BILLION OF ADDITIONAL AND TRAINING THAT HELPS WORKERS BENDIGO AQUATIC ADAPT TO CHANGES IN OUR ECONOMY INVESTMENT IN SCHOOL EDUCATION OVER SIX YEARS $ CENTRE 15MILLION JOB-CREATING FREE WI-FI ON INFRASTRUCTURE 3 70 0 PAYROLL TAX RATE $ V/LINE TRAINS AND JOBS REDUCED TO 40 TO REMOVE MOBILE MELBOURNE RAIL LINK MILLION PHONE BLACKSPOTS EAST WEST LINK – 3 000 NEW INTERSECTION JOBS WESTERN SECTION 700 % $ ON THE CALDER JOBS 4.85 86 HIGHWAY AT FROM 1 JULY 2014, TO BENEFIT CITYLINK – TULLA WIDENING MILLION RAVENSWOOD 39 000 VICTORIAN EMPLOYERS NEAR BENDIGO 2014-15 Budget Overview 1 Strengthening Victoria’s finances FORECAST GROWTH IN SURPLUS NET DEBT FORECAST TO DECLINE 3.3 6.3 3.2 6.1 3.0 4.7 4.6 4.5 1.3 0.9 BILLION PER CENT OF GSP 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18 • ACTION TO MAINTAIN VICTORIA’S TRIPLE-A CREDIT RATING • MANAGING FINANCES TO HELP FUND RECORD INFRASTRUCTURE Strong budget discipline over four consecutive budgets has allowed the EXPENSES GROWTH(a) Coalition Government to fund a record 12.6 infrastructure program of up to $27 billion and deliver high-quality 10.5 frontline services. 9.4 The Coalition Government is continuing 7.7 7.3 7.7 BUDGET AND 6.8 FORWARD ESTIMATES to responsibly manage net debt. Net 6.4 debt is falling over the next four years 5.9 5.9 as a percentage of gross state product, CENT PER 4.0 3.6 3.9 and net infrastructure spending is 2.7 2.8 3.1 forecast to be fully funded by cash AVERAGE 2.1 from operations from 2015-16. 0.7 To maintain Victoria’s triple-A credit rating, the strongest amongst the states, the Coalition Government has acted decisively to bring spending under 2011-12 2017-18 2016-17 2012-13 2015-16 2013-14 2014-15 2010-11 2001-02 2009-10 2002-03 2007-08 2003-04 2006-07 2005-06 2004-05 2008-09 control while growing frontline services. 2000-01 Victoria is the only state or territory (a) The expenses growth for 2013-14 excludes the impact of the revised AASB119 Employee Benefits. to forecast surpluses for each of the next four years. In 2014-15, the Victorian economy VICTORIA’S ECONOMIC FORECASTS is expected to grow by 2.5 per cent, per cent rising to 2.75 per cent over the forecast 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 period. Employment growth is expected Actual Forecast Forecast Forecast Forecast Forecast to be near trend of 1.5 per cent, while the unemployment rate is expected to Real gross state product 1.6 2.00 2.50 2.75 2.75 2.75 remain stable at 6.25 per cent, before Employment 0.8 0.75 1.25 1.50 1.50 1.50 gradually declining to 5.5 per cent over Unemployment rate 5.7 6.25 6.25 6.00 5.75 5.50 the forecast period. Consumer price index 2.2 2.75 2.25 2.50 2.50 2.50 Wage price index 3.3 2.75 3.25 3.50 3.50 3.50 Population 1.9 1.8 1.8 1.8 1.8 1.8 2 2014-15 Budget Overview Building a stronger Victorian economy STRONG AND DIVERSE SOLID GROWTH IN GROSS STATE GROWTH INDUSTRIES PRODUCT FOOD & FIBRE INTERNATIONAL TOURISM EDUCATION 2.5% IN 2014-15 UP FROM 2 PER CENT IN 2013-14 FINANCIAL & FREIGHT & INSURANCE SERVICES LOGISTICS • INVESTING IN INFRASTRUCTURE, TRAINING AND EDUCATION TO CREATE JOBS, INCREASE PRODUCTIVITY AND GROW THE ECONOMY The Coalition Government’s record investment on transformational new A growing Victoria infrastructure projects and funding for education and training will create new Victoria is one of the fastest-growing states with near record population opportunities and jobs, and increase growth at 1.8 per cent annually. This reflects Victoria’s liveability driven productivity and economic growth. by strong economic management and sound investment opportunities for business and industry. Overall, population growth is expected to remain Victoria has a diverse and flexible high by historical standards, easing slightly from 1.9 per cent in 2012-13 economy and is well positioned to to 1.8 per cent over the forecast period. take advantage of new and growing sectors to drive economic growth both domestically and internationally, HIGHEST NET INTERSTATE MIGRATION IN 30 YEARS including in: DECEMBER 2012 – SEPTEMBER 2013 – food and fibre exports; – international education; – tourism; – financial and insurance services; and NT – freight and logistics. -363 QLD The agricultural industry is critical to regional Victoria, and the Coalition 796 Government’s $35 million Food and WA Agriculture into Asia will support emerging export opportunities created -601 NSW by the increasing demand from the SA growing consumer class in Asia. 1 632 3 818 ACT 719 TAS NET 6 903 INCREASE IN 902 VICTORIA’S POPULATION 2014-15 Budget Overview 3 State-shaping infrastructure to build a better Victoria CHANGING THE WAY PEOPLE, GOODS AND SERVICES MOVE AND CONNECT THROUGHOUT VICTORIA UP TO $ 24BILLION FOR NEW TRANSPORT INFRASTRUCTURE PROJECTS • INCREASING TRANSPORT CAPACITY AND RELIABILITY • BOOSTING WORLD-CLASS FREIGHT AND LOGISTICS • PROVIDING BETTER ACCESS TO SERVICES The Coalition Government is delivering a program of job-creating GOVERNMENT INFRASTRUCTURE INVESTMENT major infrastructure projects that will transform Victoria. 7.5 The Coalition Government’s 7.1 6.4 6.4 infrastructure program delivers 5.8 planned and targeted initiatives 5.3 5.4 5.4 5.0 5.2 that will build a better Victoria 4.4 4.5 by improving liveability, creating BILLION 3.3 new jobs and boosting the 3.1 2.7 productivity of our local industries 2.0 2.2 as they compete globally. 1.6 AVERAGE In total, Victoria’s transport infrastructure program of up to $24 billion of new projects will deliver jobs, from office-based engineering and design roles to 2011-12 2017-18 2016-17 2012-13 2015-16 2013-14 2014-15 2010-11 2001-02 2009-10 2002-03 2007-08 2003-04 2006-07 2005-06 2004-05 2008-09 onsite roadworks and building and 2000-01 construction jobs, plus the small businesses that support them. State-shaping projects across the rail, road and freight networks Asset recycling opportunities The Coalition Government will enter PORT OF MELBOURNE - will dramatically change the way ASSET RECYCLING people, goods and services move into a medium-term lease over the right throughout Victoria.
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