Baillieu’s Budget To Take Victoria’s Economy Backwards

Posted on 02. May, 2012 in News

Victorian families hoping for the Baillieu Government to deliver a budget that would create jobs and provide much-needed support have been let down, Leader of the Opposition Daniel Andrews said today.

“Ted Baillieu has delivered a horror budget for Victorian families who were hoping for a government that would protect jobs,” Mr Andrews said.

“Instead of setting up Victoria for the future, this budget has set Victoria backwards.

“Ted Baillieu has failed the test of leadership. This is a budget of excuses and no solutions. “

The First Home Owners grant program has gone, the School Start Bonus has been dumped and the Education Maintenance Allowance slashed.

Meanwhile, the Government is taking more taxes from Victorians’ pockets than ever before, with revenue up to a record $55 billion.

Despite the Baillieu Government’s bleating, today’s budget reveals that GST revenue will actually increase by 6.3 per cent to $11 billion in 2012-13, raking in an additional $658 million next year.

Pensioners will get a miserable 2 per cent increase, despite inflation forecast to be 2.75 per cent, while Ted Baillieu has awarded Ministers and MPs an increase of 2.5 per cent.

While the budget has forecast employment growth at zero in this financial year, the Baillieu Government will cut 600 extra jobs from the public sector. This brings the number of public sector jobs to be cut to 4200 from a Premier who promised he wouldn’t cut a single job.

Mr Andrews said the Government’s decision to dump the First Home Owners Bonus would hurt Victorians and jobs.

“Not only did the program provide support for first home owners who purchased newly constructed homes, it created thousands of new jobs across the state.

“Ending this bonus will hurt families and destroy construction jobs. “

Mr Andrews said this budget highlighted the Government did not care about families.

“The School Start Bonus has been abolished for thousands of Victorian families whose children start school in prep or year seven from 2013,” Mr Andrews said.

“Given the Baillieu Government last year means tested this bonus, this savage cut will hit families who can least afford it.”

Mr Holding said the budget would do nothing to create and secure jobs or grow the economy.

“In the current financial year employment growth is zero and in 2012-13 employment is predicted to grow by just 0.25 per cent,” Mr Holding said.

“Last year the government told us this figure would 1.75 percent and Kim Wells promised he would create 55,000 jobs each year over the next four years.

“This year’s budget exposes this promise as a cruel hoax.”

Mr Holding said the Baillieu Government was expected to attract only half of the new investment that Labor attracted in its last year in Government.

“Last year the Baillieu Government was warned that low growth would cost Victorian jobs and hurt our state finances,” he said.

“The Government didn’t listen and Victorian families are now paying the price for this arrogance.

“Jobs are being lost, taxes and charges will be higher, services to families are being slashed and Victorians will have to wait longer for vital infrastructure projects because this Government has been asleep at the wheel.”

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