In the recently released Victorian government budget and in the accompanying Treasurer’s speech, the government made much of a fall in GST and stamp duty revenue, claiming ‘significant revenue write downs’ and a reduction of $7.6 billion over the forthcoming four year period 2012-13 to 2015-16.
This would suggest an actual expected decline in the total revenue amounts from past years and into future years.
However, close reading of the budget indicates that the reference to the decline relates to estimates made in late 2010.
In fact, the budget figures clearly show that government revenue has actually been increasing steadily since the time of those estimates and that this will continue to be the case.
Total revenue will increase by 3.2% for 2012-13 and then increase by an average of 4.4% for the following three years.