Room to push Victoria s borrowing limits

Room to push Victoria’s borrowing limitsIncreasing debt can fund an infrastructure backlog and address growing congestion, while creating jobs and prosperity, says the Property Council.As the 5 May state budget looms, the Property Council has called on the Victorian Government to outline how it will deliver on a pipeline of road and rail projects.Around $15 billion of new transport infrastructure is being planned and delivered by the government, including up to $11 billion for the Melbourne Metro Rail Project.It is expected that the budget will allocate $300 million to kick start the project – but how the rest will be funded is yet to be determined.The government has promised to deliver on all election promises without increasing taxes, adding new taxes or increasing government charges, such as fines and car registration fees.With borrowing costs at historic lows, the Property Council’s Victorian executive director Jennifer, Cunich, says there is room to push Victoria’s borrowing limits.”At a time when interest rates are so low, it has never been cheaper for this state to borrow. This would be a golden opportunity to see how much borrowing could be put towards infrastructure to increase productivity and bring gains to the state.”The Property Council will continue to advocate for borrowing levels to be independently handled by Infrastructure Victoria.