VICTORIA'S finances will take a hit of at least $5 billion over the next four years, due to underfunded projects and cuts to GST funding.Premier Ted Baillieu released a Victorian Economic Financial Statement today, after asking Treasury to prepare a summary of pressures on the budget, which will be released next month.
Mr Baillieu said cost blow-outs in Labor projects, such as myki, the Regional Rail Link and the Melbourne Wholesale Market redevelopment would cost the state $2 billion.
The Federal Government's decision to slash the state's GST funding by $2.5 billion over the next four years plus a delay in $500 million worth of Commonwealth funding for the rail link contributed to the rest of the hit.
But the document does not reveal the individual cost blow-outs for myki, the rail link, the market redevelopment or the link police database because negotiations are continuing.
It also does not include the money flowing into the state's coffers.
"There is a $5 billion-plus funding shortfall which the budget in Victoria will now have to address," Mr Baillieu said.