Public service job cuts on cards for state budget, as interest rates bite

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Public service job cuts on cards for state budget, as interest rates bite
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Victorians have been told to brace for difficult budget decisions as the Andrews government struggles to offset a multibillion-dollar financial hit linked to rising interest rates, with cuts to public service jobs being considered.

The wage bill has risen sharply in recent years, and the latest Department of Treasury predictions show the government is expecting to spend about $33.5 billion on wages this financial year, soaking up the equivalent of about 39.5 per cent of total revenue.

Treasurer Tim Pallas is preparing for the May 23 state budget, and says election promises will be honoured.“Just as all Victorians are facing cost of living challenges with rising interest rates and inflation, the Victorian budget will also take into account current economic conditions,” the spokesman said.

“It’s an indictment on a government where it’s as if public servants are a throw-away commodity,” Batt said.“The ability to deliver services requires staff that are trained to work for government. They do the research, the policy design, they roll out the programs, the budget settings. It [the public service] should not be disregarded as it has been.”

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