Victoria plans to cut 3,000 public sector jobs

Victoria's government faces financial challenges as spending has surged under former Treasurer Tim Pallas. His decade-long tenure saw debts rise significantly, leaving the state in a tough economic position. In a recent financial report, Premier Jacinta Allan and new Treasurer Jaclyn Symes highlighted the state’s economy is recovering but acknowledged the fiscal issues inherited from Pallas. When Pallas took office in 2014, the state’s operating expenses were about $52 billion. By the time he left, that number nearly doubled to $101.65 billion. During Pallas's time, Victoria's population grew by 17%, but spending outpaced this growth. Adjusted for inflation, today’s expenses reflect a significant increase since 2014. Lastly, the state’s tax revenue has risen sharply, making it clear that Victorians are bearing the burden of increased government costs. To address these concerns, Allan and Symes have appointed Helen Silver to review the Victorian Public Service. The goal is to identify and potentially eliminate redundant agencies and reduce the public service workforce by up to 3,000 positions. There are currently 322 entities in the government, leading to overlapping roles and inefficiencies. The review will focus on which programs are necessary and which can be cut. This effort aims to streamline government operations and curb excessive spending. The results of the review could reshape the state’s public services for years to come.