The Victorian government is spending big on school buildings, social housing, cultural facilities, health and transport infrastructure in its record-shattering 2020/21 budget.
An additional $1.9 billion will be spent on school upgrades and new builds, on top of the $1.1 billion previously announced. The $3 billion spend includes $1.28 billion for 162 upgrades of schools most in need. Architects will be appointed from January 2021 and construction work on every project will start within 16 months.
A new $122.4 million vertical primary school will be built in North Melbourne for a 2023 opening and $147 million has been allocated to acquire land for 11 new schools.
The budget also includes $1.4 billion for the previously mooted redevelopment of Melbourne’s Arts Precinct, which will include a new stand-alone National Gallery of Victoria Contemporary.
In addition to the $5.3 billion previously announced for social and affordable housing, which will see an additional 8,200 social housing units in the system across Victoria, the budget also includes $155 million to implement coronavirus preparation and prevention measures in public housing.
Another $2 billion will go towards building, expanding and modernizing hospitals and health services across the state, including $384.2 for the redevelopment of Warrnambool Hospital and $562 million for the expansion of Frankston Hospital – an election promise.
There have also been significant announcements around transport infrastructure, with the Victorian government matching the federal government’s $5 billion for the Melbourne Airport Rail link, as well as matching the $2 billion commitment for Geelong Fast Rail. The government is also spending $2.2 billion on the first stage of the Suburban Rail Loop and making its biggest tram order in decades, spending $1.48 billion for 100 modern trams to replace the ageing A and Z-class models.
A number of smaller funding commitments for projects around the state are also contained in the budget, including $142 to complete the final stage of the Kardinia Park Stadium redevelopment, $272 million to build new law courts in Wyndham and $23 million to build a new visitors’ centre at Wilsons Promontory, and establish a 50,000‑hectare biodiversity sanctuary protected by a predator-proof fence.
In total, the government is planning to spend $49 billion over the next four years, relying on record levels of debt to lift the economy out of the deep slump triggered by the COVID-19 pandemic.
“This has been a year like never before. And it demands a budget like never before,” said treasurer Tim Pallas in his speech.
“With Victoria’s gross state product forecast to decline by 4 per cent in 2020-21, the pandemic’s economic impact is likely to be the biggest in nearly a century. Without decisive action, the impact could be devastating. That’s why the Andrews Labor Government understands now is not the time to deliver a budget in surplus.”
