Neil Mitchell’s warning after Victoria records $6.5 billion deficit

Neil Mitchell says Victoria’s financial pain from COVID-19 has only just begun after the state recorded a $6.5 billion deficit in the last financial year.

For the year to June 30, revenue in Victoria was $3 billion down on what was anticipated.

And spending was $4.2 billion higher than forecast.

The government report made it clear the turnaround is a result of the pandemic and summer bushfires before that.

A drop in gambling revenue from pokies, fewer traffic fines and the pause on elective surgery are three major reasons for the drop in revenue.

“It (the deficit) is not a surprise, but the important thing is where the money went,” Neil Mitchell said on Thursday.

Alarmingly, the figures don’t include Melbourne’s second crushing lockdown.

“It is going to be a huge, huge hit next year,” Neil Mitchell warned.

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