Victorian Government Achieves Surplus, But Faces Challenges: The Victorian government is on track for its first operating surplus since the pandemic, thanks to an unexpected $1.5 billion in additional revenue. However, spending continues to rise, with recurrent expenses projected to reach $109 billion and the wage bill exceeding $39 billion. The government delayed a planned increase in the Emergency Services and Volunteers Fund charge, costing $133 million in lost revenue, and pushed back tax hikes for farmers. The total tax collection for the next fiscal year is still projected to be higher than previously forecast. Despite a revised operating surplus of $700 million, the state remains significantly in the red, with a cash deficit of nearly $14 billion. The state is projected to spend over $40 billion more than it generates in revenue over the next few years, adding substantially to its debt. The states economy is forecast to grow at a slower rate than its population, suggesting a decrease in economic well-being for Victorians.

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