With an election looming, Victoria’s debt is huge. But are the state’s finances really that bad?

Key points

• Victoria's net debt has risen to $161 billion, more than New South Wales and Queensland combined, with debt servicing costs now 6.9 per cent of state income. The state recorded a $2.4 billion net operating surplus in 2025-26, and its assets of $465 billion exceed its $268 billion in liabilities.
• Growth in debt is forecast to be lower than in some other states.
• The analysis argues that voters may weigh issues such as potholes, high-rise approvals and crime more heavily than debt, though a royal commission into the infrastructure program is under way.