VCCI Highlights Economic Challenges and Spending Concerns
Amid rising cost-of-living pressures, the Victorian Chamber of Commerce and Industry (VCCI) is urging the State Government to focus on fiscal discipline in its upcoming budget. This call comes as global economic uncertainty intensifies, with recent warnings from the International Monetary Fund and the Reserve Bank of Australia about rising inflation and slowing growth.
VCCI cautions that broad, untargeted spending could increase the state’s debt without delivering lasting economic benefits. Targeted and temporary support measures, funded within existing means, are essential. “Every new ongoing measure adds to the debt burden,” said Sally Curtain, Chief Executive of VCCI.
The State Government’s extension of free public transport through May and introduction of half-price fares from June aims to assist commuters. However, VCCI points out that these benefits may not reach those in outer suburban and regional areas with limited access.
Creating favourable conditions for business investment and employment growth is crucial for Victoria’s economic recovery. Stabilising and reducing debt are vital steps to effectively address cost-of-living challenges. “Business needs certainty,” Curtain stated, emphasizing the need for strong, responsible economic management.
Targeted Support and Economic Stability
Sally Curtain highlighted the pressure faced by Victorian businesses, stating they are “cutting hours, absorbing costs and making tough decisions just to stay afloat.” She emphasised the importance of targeted government spending, saying, “It’s not about how much government spends – it’s about how well it’s targeted.”
Curtain warned against making permanent commitments that increase the state’s debt burden, explaining that “business needs certainty” and confidence comes from “strong, responsible economic management.” VCCI urges the government to focus on disciplined financial decisions that support those most in need, while maintaining sustainable state finances.
According to VCCI, Victoria does not have a revenue problem but a spending problem. The focus should be on disciplined decisions to ensure the state’s finances remain on a sustainable path. The International Monetary Fund and Reserve Bank of Australia have provided warnings about a more challenging economic outlook. This includes expectations of rising inflation and slowing growth amid global instability.
Last updated: 28 April 2026, 11:19 am
