The Economy

Public Finances:

  • Victorian debt was reduced from $32 billion in 1992 to $5 billion in 1999.
  • The annual interest on Victoria’s debt was reduced from $1.8 billion in 1992 to $530 million.
  • The Budget deficit of $2.2 billion in 1991-92 was turned to a surplus of $67 million.
  • Victorian taxes as a proportion of gross state product (GSP) were falling (6.2% in 1996-97 to 5.6% in 1999-2000) and were in 1999 below the national average.
  • Kennett Government spending on education in 1999 was 12% above the levels from 1991-92 (after inflation).
  • Victorian spending on health, social security and welfare grew by 24% (after inflation).
  • Private business investment doubled from 1992 to 1999, from $8 billion to $16 billion.
  • Victorian employment stood at 2,202,900 persons in July 1999 – the highest level to date.
  • Retail trade was stronger in Victoria than any other state — growing 11% over the year to 1999 (well above the rate of NSW at 7% and well in excess of the national average of 7%). (source: ABS – month of June).
  • New car registrations were at record levels, and growing by 4% a year (compared with -4% nationally). (source: ABS – Month of June).
  • For the first time on record (since 1971), more people were moving into Victoria, than were moving out (compared with net outflows of 30,000 in the early-mid 1990s).