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History doesn’t repeat itself, but it sure does rhyme.
When Jeff Kennett became Victorian Premier in October 1992, Victoria’s net debt was more than 30% of gross state product (GSP) — one of the highest state debt burdens in Australian history — and it had lost its AAA credit rating and was facing rising borrowing costs.
Operating deficits were entrenched at around 3% of GSP, and interest payments consumed a large share of revenue.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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