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Vic debt only for infrastructure: Pallas

Victoria will only take on new debt to fund important infrastructure, Treasurer Tim Pallas says.

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Source: AAP


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Victoria could take on billions of dollars of new debt to fund its infrastructure projects, Treasurer Tim Pallas says.

After putting out a hand for federal funding for the $10.9 billion Melbourne Metro Rail project, Mr Pallas gave a "rock hard guarantee" Victoria would only use debt for important infrastructure.

"Once I've got rock hard, I'm staying rock hard for the purposes of commitments that I give," Mr Pallas told reporters on Friday.

"That we will absolutely ensure that we will only use those borrowings for the purposes of building economy-growing infrastructure.

"Economic infrastructure, whether it's Melbourne Metro, whether it's roads in our rural and regional areas, whether it's our water networks, all of these things."

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Mr Pallas said Victoria was one of the few triple-A rated economies in the world, and could borrow at very cheap rates.

The Victorian budget is due in May.


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