<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Unveiling </span><a href="https://www.9news.com.au/victoria" rel="" target="" title="Victoria's"><span>Victoria's</span></a><span> 2026/27 budget papers today, Premier </span><a href="https://www.9news.com.au/jacinta-allan" rel="" target="" title="Jacinta Allan"><span>Jacinta Allan</span></a><span> and Treasurer Jaclyn Symes were all smiles as they announced the state's first operating surplus in seven years, ahead of a crucial election campaign. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This year's budget put forth a $727 million surplus in 2025-26 and estimated $1 billion in 2026-27, with an average $1.7 billion surplus over the forward estimate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I am proud to confirm Victoria's first operating surplus in seven years," Symes said in her budget address.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/victorian-budget-winners-and-losers-jacinta-allan-jaclyn-symes/84abc86e-50f1-471b-a3d9-8dd8b980671d" rel="" target="" title="All the winners and losers from this year's Victorian budget"><strong><span>All the winners and losers from this year's Victorian budget</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But behind the polished veil of an operating surplus, budget papers reveal that when project spending is factored in, Victoria's spending is about $7 billion more a year than the revenue it is bringing in.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Figures in the budget reveal a record tax take and a $2 billion GST windfall from the Commonwealth is to thank for this year's operating surplus.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That allowed the state to deliver a raft of sweeteners, including free public transport until the end of May and 20 per cent off vehicle registration.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/victorian-budget-jacinta-allan-is-boasting-her-first-operating-surplus-in-seven-years-the-budget-tells-a-different-story/76f285b6-cf81-4c1c-a8e9-b774c19787e9" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We can afford it because our budget is in surplus," Allan wrote in a budget media release.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-may-5-donald-trump-latest-world-news-headlines/65a1ee30-d4c9-4059-ad31-aee74fa879b7" target="_blank"><strong><span>UAE intercepts Iranian missiles in first strikes since ceasefire</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Shadow Treasurer James Newbury was quick to label Labor's fiscal strategy a "fake surplus" during question time, while Nationals leader Danny O'Brien also criticised the budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The only thing we see in this budget that's in surplus ... is a surplus of spin," O'Brien said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Net debt in Victoria is hurtling towards $200 billion and is projected to take up a 24.4 per cent share of the state's economy by 2030.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We have seen net debt soar towards $200 billion in Victoria. When the Coalition left office in 2014, it was $20 billion," Opposition Leader Jess Wilson said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/federal-budget-2026-what-to-expect-signficant-changes-announcements-explainer/94106a49-6102-447d-bb6a-53aabc1d4a5f" target="_blank"><strong><span>Major tax reform, spending cuts and defence boost: What you can expect in this year's 'ambitious' federal budget</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Victorians now will be paying an interest bill that could fund police, ambos and kindergartens and leave a billion dollars in change."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Victoria's interest bill is expected to almost double by 2029/30, rising from $6.774 billion in 2024/25 to $11.82 billion in 2029/30 - the equivalent of $32.38 million per day.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Symes argued the state's rising interest bill was "helping to grow the economy".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The reason you pay interest predominantly is because you've borrowed to build productive infrastructure ... the alternative is you don't build infrastructure, you stop. And all of those jobs I just talked about go," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"You might have less debt, you might have less interest, but you don't have a productive society.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Borrowing for infrastructure is what a strong economy needs."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/person-shot-by-us-secret-service-in-washington-dc/36a8a33e-c741-4e1f-bc5f-085a66f8a105" target="_blank"><strong><span>Washington shooter opened fire after Secret Service confrontation</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Today's budget also failed to reveal the impact of Labor's promise to spend an extra $11.5 billion on the Suburban Rail Loop.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The $34 billion project is supposed to be equally funded by the state, the Commonwealth and "value capture".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But in January the government committed to funding that final third through "up-front debt" which will be recouped over 40 years via localised taxes, raising major concerns over potential interest implications.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In an effort to rake in additional revenue, the Allan government will end its motor vehicle duty concession for luxury vehicles, which is expected to bring an extra $12.6 million into the state's coffers in 2027/28.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Victoria will also collect more revenue from fines, which is expected to rise more than 15 per cent from $886 million in 2026/27 to $997 million in 2029/30.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Some of those extra funds will flow to rising public sector wages, which are tipped to pass $41 billion in the next year - $1.3 billion higher than forecast.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>By 2030, those figures will hit $45 billion, which Symes said was evidence of the government's endeavour to recruit more teachers and healthcare workers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We back our teachers, our nurses, our police. We want more of those people employed, that's why the figures go up," Symes said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>