The Victorian government’s use of emergency contingency funds to finance major infrastructure projects, including the $34.5 billion Suburban Rail Loop (SRL), has raised concerns about transparency and fiscal responsibility.
A recent revelation that over $5 billion was spent through a government “credit card” known as the Treasurer’s Advance in the past financial year has brought the issue to the forefront.
Originally intended to cover urgent, unforeseen expenses like natural disasters or public health crises, the Treasurer’s Advance has increasingly been used for large-scale projects. Among the recipients is the SRL East project, which has already been allocated $1.3 billion for major works, along with an additional $184 million for early works. Critics argue that using these funds for infrastructure is inappropriate and undermines the principle of financial prudence.
Independent economist Saul Eslake has called the practice “inappropriate,” urging that it be investigated by the Auditor-General. He argues that while emergency funds were justified during the pandemic, continuing this practice long after the crisis has ended is difficult to defend. The shift in how these funds are used is symptomatic of a broader financial strain on the state, with Victoria facing rising debt and budget pressures.
Forecasts predict that Victoria’s net debt could reach $187.8 billion within four years, with debt growing faster than anticipated. The SRL has already encountered funding difficulties, as the federal government has yet to deliver the $2.2 billion it promised in 2022. Speculation is rife that the government is using Treasurer’s Advances to keep the SRL on schedule, with tunneling set to begin in 2026 and trains expected to start running in 2035.
Opposition figures have seized on the issue, with Shadow Transport Minister David Southwick accusing the government of using Treasurer’s Advances to hide the true cost of projects. He points to more than $41 billion in cost overruns across infrastructure projects, arguing that Victorians deserve full transparency in how their tax dollars are being spent.
Government officials defend the use of Treasurer’s Advances, stating that these funds are a standard tool for allocating money after the budget has passed. They argue that advances are necessary for urgent or unforeseen events, and that they are being used appropriately for projects already approved in the budget.
As Victoria grapples with rising debt and ambitious infrastructure projects, the growing reliance on Treasurer’s Advances raises important questions about fiscal sustainability and transparency. Taxpayers have a right to understand how their money is being spent, and scrutiny of these funding decisions will be crucial moving forward.
