Victoria's net debt will rise to $305.3 billion if the government doesn't start to pay off its borrowings, an independent agency has warned.
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The Parliamentary Budget Office on Sunday released its projections on the state's debt following the 2023/24 state budget.
Treasurer Tim Pallas forecast net debt will increase by 10.1 per cent per year on average from 2022/23 to 2026/27.
The budget office found if net debt continued to rise at that rate, it will reach $305.3b in 2032/33 or 31.9 per cent of gross state product.
The office also looked at the government's forecast that net debt would hit $171.4b and be 24.5 per cent of GSP in 2026/27.
It found if the ratio stayed at 24.5 per cent, net debt would grow 5.3 per cent per year to reach $234b in 2032/33.
Premier Daniel Andrews would not comment on the budget office projections, saying the assumptions underlying the agency's forecasts were unclear.
But he said his government was committed to stabilising the debt through its COVID-19 repayment plan, including introducing new levies on big business and property investors.
"There's only one COVID debt repayment plan anywhere in our country at the moment and that is right here in Victoria," Mr Andrews said.
But Opposition Leader John Pesutto has accused the government of leaving the state's economy open to risk because of the large debt.
"COVID debt, to the extent there is any, represents only a small part of Victoria's overall debt position," he told reporters on Sunday.
"Debt is out of control because the Andrews government can't manage the economy."
Australian Associated Press
