Backwards Under Baillieu
The Baillieu Government’s second budget is a horror budget for Victorian families who were hoping for a government with a plan to save jobs.
Ted Baillieu has failed the test of leadership. This is a Budget of excuses and no solutions.
Last year’s Budget was a disaster for Victorian families, this year’s Budget is a catastrophe.
Instead of setting up Victoria for the future, it has set Victoria backwards.
Jobs Killing Budget
In the current financial year employment growth is zero.
Last year the government told us this figure would 1.75 per cent 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. In the 2012-2013 financial year employment is set to grow by only 0.25 per cent.
In addition the Government is expecting to attract only half, of the new investment that Labor attracted in Labor’s last year in Government.
The long-term major infrastructure projects are all on the never never – funding business cases, planning and development and “preparations”.
Regional Victoria will also see a significant decline in new investment.
This means the pipeline of new jobs generating projects in Victoria has come to a grinding halt.
An additional 600 jobs will be cut from the Public Sector, before the election Ted Baillieu promised he wouldn’t cut a single job; he has instead sacked 4200 Victorian Public Servants.
Families Hit Hardest
On the weekend Ted Baillieu called for the Reserve Bank of Australia to cut interests rates and help struggling families. While the RBA has done their
part to make it cheaper for Victorians to build their first home Ted Baillieu has chosen to make it more expensive.
The First Home Owners Bonus has been cut. Not only did it 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.
The School Start Bonus has been abolished from 2013. This will hurt thousands of Victorian families whose children start school in prep or year seven.
Given the Baillieu Government last year means tested this bonus, this savage cut will hit hardest families who can least afford it.
In a further blow, the Education Maintenance Allowance has been slashed and school support programs such as speech therapists and social workers have been slashed.
Financial Performance and Economic Outlook
Victorians feared that the budget surplus would be built on creative accounting.
Were it not for raiding more money from public entities the Victorian Budget would be in deficit in 2011-12 and 2012-13.