The Nationals’ Member for Shepparton District, Kim O’Keeffe has labelled the 2026-27 Victorian State Budget as one that “underdelivers” for rural and regional Victoria, with the Allan Labor Government’s exorbitant debt aligned with their city-centric spending and cost blowouts.
Ms O’Keeffe stated that despite both the Premier Jacinta Allan and Treasurer Jaclyn Symes describing the budget as an “operating surplus”, Labor has confirmed a cash deficit of $7.7 billion.
“Despite all the spin and deflection by both the Premier and Labor, this is a budget that highlights the government’s disastrous track record when it comes to their financial mismanagement in office.
“A budget that is full of higher debt, higher taxes, higher interest repayments, cost blowouts and delays, Victorians are paying the price,” Ms O’Keeffe said.
The 2026-27 Victorian State Budget also confirmed that since Labor taking office in 2014:
- Net debt has increased from $21.8 billion to $199.3 billion in 2029-30
- Interest repayments have increased from $2.1 billion to $11.8 billion in 2029-30
- Total tax revenue has increased from $17.9 billion to $50.2 billion in 2029-30
“It is hard to fathom that interest payments are heading towards $1 million per hour and rising debt will continue to place pressure on future budgets and service delivery.
“We know that Victorians are experiencing ongoing cost of living pressures and Labor increasing the state’s debt will only place further strain on families and household budgets.
“Whether it be higher energy bills to housing stress, many people across the Shepparton District electorate are feeling the pinch. This budget does not help support families at a time when they need it most.
“The ongoing housing shortage remains a key issue across our region, with demand for affordable and social housing continues to be experienced. We have one of the highest rates of homelessness in the state, we are in need of urgent support when it comes to more housing.
“It is a disgrace that Labor has made further cuts to key portfolio areas including agriculture and regional development.”
Ms O’Keeffe said that it was pleasing to see a number of projects funded in this year’s State Budget, but a number of critical and important projects continue to be unfunded and neglected by the Allan Labor Government.
“Whilst it is welcomed to see $7.1 million in funding included in the budget to operationalise the new PET scanner at GV Health, the hospital’s next stage of development remains underfunded by Labor.
“GV Health is the only hospital in rural and regional Victoria without a dedicated Integrated Cancer Centre. GV Health’s hospital redevelopment is only 50 per cent complete, you simply cannot half finish a project.”
The Shepparton Sports and Events Centre is a long-time project that continues to remain a priority for Ms O’Keeffe, stating that the State Government has only made a $5 million contribution towards the project. This is a run-down facility and one that was built back in 1972 which needs urgent investment now.
“It is so frustrating when you see the sheer amount of financial mismanagement and cost blowouts by this government. $15 billion gone in rorts on Big Build sites that could have provided the investment and services our community needs.
“We have the government investing $100 million for new and improved bus services, but Labor has again ignored the desperate need for a bus review in Shepparton.
“A bus review is urgently needed to be undertaken so that our region has adequate bus transport services that we need as our community grows. This has become a critical issue for our community and I am astounded that we have not been included as one of the regions to be included for a review.
“Our region is still missing out on funding for critical road upgrades across Greater Shepparton and Moira Shire. Many are dangerous intersections and roads that need urgent attention.”
Some of the funding announced include:
- $30 million in funding for additional train services on the Shepparton Line, yet we are still having to wait for these services to be delivered
- $1.2 million in funding for Greater Shepparton Secondary College to continue its family engagement and wellbeing services as well as post-secondary pathways
- $7.1 million in funding for GV Health to operationalise the new Positron Emission Tomography (PET) Scanner
“Victoria cannot continue down this path of financial mismanagement, higher debt, higher interest repayments and increasing taxes.
“Victorians need a fresh start and only the Nationals and Liberals have a plan that will deliver long-term economic sustainability by lowering debt and taxes and creating a better future for all Victorians.”