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 Presented by Robert Clark MP

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1999 State budget overview

The Treasurer, Alan Stockdale, has delivered the 1999-2000 State Budget, which includes $383 million in new initiatives and $1.36 billion in new capital works.

Major initiatives include:

· A $310-million five-year investment to boost science, engineering and technology.

· A third cut to payroll tax, from 6 to 5.75% in 1999-2000 and a total 1.25 percentage-point reduction over three Budgets.

· Health spending above $5 billion for the first time, up 24% in real terms compared with 1991-92.

· $104 million in new technology and $99 million in capital works for schools, with current spending 12% above 1991-92 in real terms.

· $94 million over four years to create 50,000 extra apprenticeships and traineeships.

· 400 extra police over the next two years and mobile data terminals for police and other emergency services.

· State debt down to $6.1 billion, less than one-fifth of the level of the early 1990s.

The $26-billion debt reduction was providing an extra $800 million for higher service spending and lower taxes.

Health spending in 1999-2000 will rise 4.0% above inflation compared with 1998-99, education spending by 6.0% and law and order by 6.0%.

Regional and rural Victoria will receive 36% of allocated capital works in health, 36% in education and 59% in justice, while representing 28% of the State’s population.

The $1.36 billion capital works program features $743 million for major roads and transport, $200.3 million for health and $129.8 million for education, meeting the Government’s 1996 pledge to deliver $1 billion in capital works to schools in four years.

Mr Stockdale said the Budget would have an operating surplus of $129 million on an accrual basis, equivalent to $67 million on a sustainable cash basis. Calculations include $100 million in lost revenue from revisions in Commonwealth Grants Commission arrangements.

Victoria could expect growth of 2.75% in 1999-2000, an unemployment rate of about 7.5% and inflation of about 2.0%.

"The State Government has reduced taxes and charges by $2.3 billion since 1993, and Melbourne has the lowest inflation rate since 1962," Mr Stockdale said.

Human services

· $147 million or 3.0% increase in health funding, with $83 million for acute care treating an extra 23,000 people a year.

· $30 million for pre-agreed salary increases for nurses and other health professionals.

· $200-million capital works budget, including major projects for the Royal Melbourne ($19.3 million) and Royal Dental hospitals ($31.4 million) and upgrades of regional facilities including Wangaratta ($15.4 million) and Lorne ($6 million).

· A $15-million increase in ambulance services, coupled with $7 million in capital works to provide new ambulances in regional areas.

· $97.5 million in public housing improvements.

Schools and TAFE sector

· $93.8 million over four years to provide 50,000 new TAFE traineeships and apprenticeships.

· $99 million for 12 new or replacement schools and refurbishments for 67 schools.

· $104 million over four years to provide new learning technology, including technical support, in all Victorian State secondary schools.

· $5 million to extend the Victorian Youth Development Program to all Victorian State schools.

· Expansion of the Youth Employment Initiative ($2.4 million over two years).

Law, order and public safety

· 400 extra operational police members ($33.7 million over two years), on top of 800 cadets to be trained by 2001.

· funding to provide 3000 mobile data terminals and 200 fixed terminals for police, ambulance, fire and rescue services (cost subject to tender).

· $49.5 million for 300 extra prison beds over four years and $35.3 million in prison security upgrades.

· $4 million increase for State Legal Aid, on top of previous recurrent allocation of $24.7 million.

Infrastructure

· Investments in Melbourne's major roads network including extension of the Eastern Freeway to Ringwood ($255 million), a new bypass at Hallam ($175 million), major upgrade of the Princes Freeway ($118.5 million) and improvements at Cooper Street, Epping ($18.8 million).

· Improvements to Victoria’s bus services ($75.8 million).

· $48.8 million for new works under the Outer Metropolitan Road Improvement program.

Regional and rural initiatives

· Extensive capital works program headed by $12 million for the Camp Street precinct in Ballarat and $9.4 million for a new international rowing course in Geelong.

· $47.5 million, four-year increase in rural sector research and development through the Growing Horizons initiative.

· New Rural Leadership Program ($3 million a year) to identify and encourage future leaders in country Victoria.

· $12.4 million for works in Victoria's National Parks and Crown Reserves.

Arts, culture and recreation

· State Library of Victoria to receive $91.4 million for redevelopment works.

· $11 million to upgrade the Melbourne Sports and Aquatic Centre, including new 50-metre pool, to prepare for major events such as the 2006 Commonwealth Games.

· $3 million for the Museum of Modern Art at Heide.

· $12 million over four years for script development and production in the Victorian film and television industry.

Investing in Victoria’s future

· $7.4 million to develop on-line tourism services to promote Victorian destinations.

· $6 million to create the Office of Immigration to attract more skilled migrants to the State.

· $80 million in 1999-2000 and a total $480 million to monitor and address Millennium Bug issues among Government agencies.

· Establishment of the Victorian Privacy Commissioner and the Electronic Signature Recognition Body to provide greater protection while using electronic commerce.

Debt reduction

· Public sector debt to fall to an estimated $6.1 billion by June 30, 1999, not taking into account proceeds from remaining gas industry privatisations.

· Debt interest payments as a percentage of government spending to fall from 13% in 1991-1992 to 3.0% in 1999-2000.

(News Release, Office of the Treasurer, May 4, 1999)

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