Victoria's 2020/21 deficit has been revised downwards after the state's economy performed better than expected between lockdowns.
The government 2020/21 financial report, tabled in parliament on Friday, shows the state recorded a $14.6 billion deficit. It's an improvement of $2.9 billion from the estimate in May's budget.
According to the report, the improvement can be attributed in part to a “stronger than expected recovery in economic activity in the June quarter”.
Total revenue for the financial year was $72.6 billion, which was $1.2 billion higher than the revised estimate, and 6.9 per cent higher than in 2019/20.
A stronger than anticipated recovery in Victoria's property market contributed to state taxation revenue being $145 million higher than initially estimated, at $23.6 billion.
Government sector expenses increased to $87.2 billion, attributed to “measures to support jobs and business and to deliver the public health response, including hotel quarantine”.
Capital spend also increased to $15 billion due to public infrastructure projects.
While 238,600 Victorians lost work between March and September 2020, 240,200 found jobs between September 2020 and June 2021.
Melbourne has endured more time in lockdown than any other city in the world, though the second half of the 2020/21 financial year was largely spared, with only 19 days of stay-at-home orders.
Its most recent lockdown began on August 5, with restrictions to begin easing when at least 70 per cent of Victorians aged over 16 are fully vaccinated against COVID-19.
Treasurer Tim Pallas said Victoria is in a strong position to rebuild as it opens up.
“While we know the pandemic has had, and continues to have, an impact on many businesses and families, these figures show how resilient our economy is,” he said in a statement on Friday.
“We bounced back after previous lockdowns and we will again.”Internet Explorer Channel Network