The Allan Labor Government once again leaves regional Victorians behind, continuing a legacy of debt, neglect and spin in its latest budget.
The 2026/27 State Budget papers show debt is still climbing fast. Net debt is heading towards $200 billion, with Victorians left to pay more than $1 million in interest per hour. A growing amount of the budget is now entirely devoted to servicing debt, while vital services and infrastructure across regional Victoria continue to be ignored.
Regional roads are in an appalling state after years of neglect, housing affordability is worsening due to Labor’s skyrocketing property taxes, and crime continues to spiral out of control as police stations shut – all because Labor cannot manage money.
The budget does nothing to address those issues – providing only excuses, not solutions.
The Budget:
• Slashes spending in key regional areas such as agriculture (down 4.7 per cent) and regional development (7.6 per cent).
• Slugs regional Victorians with double the emergency services tax – a total of $6.8 billion over four years – while giving little back by way of CFA funding.
• Promises “record road maintenance” spending while key performance measures continue to slide backwards.
Leader of The Nationals and Shadow Minister for Regional Development and Liveability, Danny O’Brien, said the budget showed Labor has lost touch with regional communities.
“After 12 years of Labor, regional Victorians are still being asked to pay more while getting less,” Mr O’Brien said.
“This budget confirms what people in the regions already know – under Labor, they are not getting their fair share despite paying higher taxes.”
“At a time when families are already under pressure from rising costs, this government is more focused on spin than delivering real outcomes for regional communities.”
“Labor talks about cost-of-living relief, but ignores the fundamentals – fixing our roads, supporting our industries and making sure regional Victorians can actually afford to live and work in the communities they love.”
Deputy Leader of The Nationals and Shadow Minister for Agriculture, Emma Kealy, said the cuts to agriculture were particularly concerning given the global economic uncertainty facing farmers.
“Farmers are on the frontline of global shocks – from rising fuel prices to supply chain disruptions – and this is the worst possible time to be cutting support,” Ms Kealy said.
“This budget cuts agriculture funding by 4.7 per cent when our farmers need more investment, not less.”
“Higher input costs are already flowing through to food production, and families will ultimately pay the price at the checkout.”
“If Labor won’t back our farmers, they’re not backing regional Victoria – and they’re certainly not backing Victorian households.”
“Our agricultural sector is critical to the state’s economy and food security, yet this government continues to take it for granted.”