Tuesday 23 July 2019
Labor’s looming debt disaster
Labor’s reckless borrowing has seen another ratings agency warn about the Andrews Labor Government’s debt levels.
Moody’s has said that Australian states, including Victoria, are “causing debt to rise more rapidly than revenue, a credit negative.”
This is now the second warning from a ratings agency about Labor’s irresponsible borrowing after Standard and Poor’s warned earlier this year that Labor’s budget position is under pressure with declining revenues and increasing employee expenses.
These warnings come after Treasurer Tim Pallas failed to rule out further increases to Victoria’s $54.9 billion debt forecast which has increased by more than $30 billion since 2017-18.
Rising debt levels mean that it costs more for Victoria to borrow money, interest payments go up and servicing this debt becomes more expensive.
If Labor spends more money servicing this massive debt then there will be less money in the budget for critical services like hospitals and schools.
This means patients wait longer for surgery on waiting lists, country roads don’t get maintained and there is less money to fix crumbling classrooms.
Victorians will once again suffer due to the financial incompetence of Daniel Andrews and Labor.