The state government says its budget is facing the same cost of living pressures as Victorian households.Credit:Jason South
That compares with an interest bill of $1.39 billion for the same six-month period in 2021.
Treasurer Tim Pallas said the report confirmed that the state economy was robust and resilient,with state final demand,a key measure of economic activity,up 4.1 per cent and employment up 2.2 per cent in 2022.
But he also warned the government was now facing “the same challenges” as households battling rising interest rates and cost of living pressures. That presents a potentially tricky backdrop for the May budget.
“The coming budget will reflect prevailing economic conditions and forecasts as Victoria continues on its deliberate and assured path out of the pandemic,” he said.
State Treasurer Tim Pallas.Credit:Jason South
Australian households are dealing with the effects of the Reserve Bank lifting its official cash rateto an 11-year high of 3.6 per cent over 10 separate interest rate rises since May last year.
The report said Melbourne recorded an inflation rate of 8 per cent for the year to December 2022,the highest for more than 30 years,warning that rising interest rates and a weaker global outlook had tempered the outlook for the state economy.