Message from Kim

1 May 2012

Coalition Government 2012-13 Budget to drive economic growth, generate jobs, deliver major infrastructure and improve community services

The Coalition Government's 2012-13 Budget delivers a responsible plan to drive economic growth, generate jobs, deliver major infrastructure and improve community services for Victorians.

Strong State Finances

The Coalition Government's 2012-13 Budget delivers the right economic strategy to put Victoria's finances onto a stronger foundation for the future while managing the tight financial constraints imposed by international economic uncertainty, a weaker national economy and consequent declines in state revenue.

Due to external economic shocks, Victoria's revenue forecasts over the next four years will be $8.3 billion lower than was forecast in late 2010. This is a bigger financial hit than that which occurred during the 2008 global financial crisis.

The previous Labor Government left Victoria a trend of unsustainable spending growth and escalating debt with no plan to address the deteriorating budget position.

Over the 10 years to 2010-11, total expenses grew at an unsustainable average rate of 7.3 per cent. In the 2012-13 Budget the government will limit expenditure growth to an average of 2.9 per cent over the forward estimates.

The Budget builds on measures announced last year to put Victoria's finances back onto a sustainable path through further savings of $1 billion over four years. Measures taken include:

limiting Parliamentarians' pay increases to 2.5 per cent for the next twelve months and a freeze on their allowances;
limiting senior public servant salary increases to 2.5 per cent;
a further reduction of 600 public service positions; and
additional departmental efficiencies.

The 2012-13 Budget delivers surpluses exceeding $100 million each year growing to $2.5 billion by 2015-16.

The government's fiscal strategy will stabilise net debt to six per cent of GSP by June 2016.

Record infrastructure investment

Infrastructure investment is a vital part of the Coalition Government's economic strategy to generate jobs, boost productivity and grow Victoria's economy.

In challenging financial circumstances the Coalition Government is delivering a record state infrastructure investment of $5.8 billion in 2012-13.

In 2012-13 there will be $41 billion of public sector capital projects including public private partnership projects underway in Victoria.

Growing Victorian businesses and the economy

The Coalition Government will support Victorian business during challenging economic times to drive economic activity, boost productivity and generate jobs.

The Coalition Government will cut WorkCover premiums by an average of three per cent from July 1 this year.

The reduction will benefit almost 60 per cent of Victorian businesses, of which nearly 59,000 will have their premiums cut by more than 10 per cent.

Victoria already has the lowest workplace insurance premiums in Australia and this cut will strengthen Victoria's competitiveness to attract business investment, reduce costs for business and support economic growth.

As part of the Coalition Government's manufacturing blueprint A More Competitive Manufacturing Industry, the 2012-13 Budget delivers $58 million to boost productivity and assist Victorian manufacturing businesses to compete in the global economy.

The 2012-13 Budget delivers new funding for the Coalition Government's Agricultural and Food Industry Program to support Victoria's producers to increase production, product development and sales of our world renowned high quality produce.

The 2012-13 Budget also provides funding for Victoria's first comprehensive International Engagement Strategy that will support Victorian businesses to engage with overseas markets, increase export sales and increase investment.

The Coalition Government will invest a further $1 billion over four years to support future economic growth with a better educated and skilled workforce, to increase productivity and workforce participation.

Quality community services and facilities for communities

The Coalition Government is prioritising funding to deliver high quality health, education, safety and community services.

The 2012-13 Budget reflects the Government's commitment to protecting the most vulnerable in our community.

It provides $13.7 billion to Victoria's hospitals and health system in 2012-13. $1.2 billion is provided over four years in additional funding for health and aged care services. Funding has also been provided for major hospital upgrades in metropolitan and regional Victoria.

A $200 million school capital program will fund new schools and important facility upgrades.

The 2012-13 Budget also delivers $1.4 billion in new funding for early childhood development, education and training and $336 million to better protect Victoria's most vulnerable children.

Growing rural and regional Victoria

The Coalition Government is committed to investing in and growing regional and rural Victoria to create new prosperity, more opportunities and a better quality of life.

The regions account for a quarter of the State's economic output, or around $71 billion a year.

The high Australian dollar has impacted on Victoria's exports, including primary production and manufacturing which have a significant presence in regional and rural Victoria.

The 2012-13 Budget builds on the significant investment made by the Government over the past year and delivers on important new infrastructure projects, including $42.2 million for the Western Highway, $35.5 million for the Ballarat Western Link Road and additional regional rolling stock.

Kim Wells Signature
Kim Wells MP
Member For Scoresby

News Feature - 2012-13 Victorian State Budget - Treasurer's Speech

INTRODUCTION

The 2012‑13 Budget is shaped by the economic challenges of the present.

But its focus is on securing the future.

Victoria\'s challenges are real and they are substantial.

Global and national economic factors have resulted in a softer economy and significant reductions in government revenue.

These forces are placing real pressure on Victorian businesses and families and on the Government\'s capacity to meet community needs.

The Government cannot ignore those realities. But nor can we afford to passively accept them.

This budget sets out a clear plan to meet these challenges and position Victoria to take full advantage of current and future opportunities.

The budget is about driving economic activity, productivity and jobs.

It is about rebuilding the State\'s finances.

It is about investing in State infrastructure, enhancing frontline services, taking new measures to protect the most vulnerable Victorians and meeting the community\'s needs in health, education and community safety.

This is a responsible and necessary approach.

As a State - as a community - we will be defined not by the challenges we face, but by the collective actions we take to address them.

Kim Wells - 2012-13 State Budget Speech Video Excerpts

http://vimeo.com/41399767

Coalition’s Responsible Budget Delivers Record State Infrastructure Spend

Premier Ted Baillieu and Treasurer Kim Wells have announced a record $5.8 billion state state infrastructure program as part of the 2012-13 State Budget.Mr Baillieu said infrastructure investment was a vital part of the Victorian Coalition Government's economic strategy to generate jobs, boost productivity and grow Victoria's economy."In 2012-13 there will be $41 billion of public sector capital projects including public private partnership projects underway in Victoria," Mr Baillieu said.

Coalition Government 2012-13 Budget To Drive Economic Growth, Generate Jobs, Deliver Major Infrastructure And Improve Community Services

The Coalition Government's 2012-13 Budget delivers a responsible plan to drive economic growth, generate jobs, deliver major infrastructure and improve community services for Victorians.

Statement From Treasurer Kim Wells: Gst Review

The Victorian Coalition Government has noted today's release of the overdue interim report into the distribution of the GST.Treasurer Kim Wells said the Coalition Government had long argued that the existing GST formula was unfair and unnecessarily complex."We have faced significant challenges in framing the State Budget as a result of the unpredictable way in which GST is distributed," Mr Wells said.

Mid-year Financial Report 2011-12 Tabled In Parliament

Treasurer Kim Wells released the 2011-12 Mid-Year Financial Report today, saying Victoria's economy had demonstrated resilience despite the challenges of international uncertainty, weaker national conditions and the impact of the high Australian dollar.The report outlines the financial results for the Victorian public sector for the six months to 31 December 2011.Mr Wells said the mid-year results had changed in part due to the Commonwealth's decision to delay almost $230 million worth of funding for several capital projects including Regional Rail Link and the Victorian Comprehensive Cancer Centre," Mr Wells said.