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Independent economist Saul Eastlake has warned of an impending "day of reckoning" for Victoria’s finances, likening it to the economic downturn of the early 1990s caused by mismanagement. While this reckoning has yet to occur, experts fear that current fiscal policies could lead to a similar crisis if unchecked.
Mounting Debt and Fiscal Concerns
One of the most troubling aspects highlighted is Victoria’s burgeoning debt burden. Forecasts suggest public debt could reach $194 billion by 2028, placing the state among the most indebted jurisdictions globally. The debt carries a heavy interest toll, with daily interest payments estimated at $21 million. This financial strain hampers the government’s capacity to invest in economic revitalization or support struggling businesses.