Tim Pallas says record debt he’s racking up is ’eminently manageable’

The Treasurer admitted the debt would take “decades” to pay off but insisted it was a necessary burden to reverse the economic damage wrought by COVID-19 lockdowns.

“There is no doubt that this will take a considerable period of time … yes it’ll be decades,” he said.

“[But] we need to grow the economy, you cannot cut your way out of a recession, you have to actually seek to grow your economy. Secondly, we’ll get to an operating cash surplus and that will happen within a matter of years.”

Premier Daniel Andrews said while the debt was unprecedented, it paled in comparison with that racked up by the federal government in its recent budget.

“I’m not reporting to you a trillion dollars worth of debt, which is where the federal government finds itself,” he said.

“We are investing now, appropriately to get this place going again.”

Mr Andrews also hit back at critics in the hospitality sector who claimed the budget had left them with “table scraps” after the impact of COVID-19 on the sector.

Restaurant & Catering Australia chief executive Wes Lambert said he was disappointed the budget didn’t include a statewide voucher scheme for eateries, as was announced in the NSW budget.

“With Victoria restaurants (sic) still down over 30 per cent in revenue from 2019, R&CA was hoping for initiatives that could stimulate demand and get our sector moving again, like was announced in NSW, but unfortunately instead we’ve been left with the budget equivalent of table scraps,” said Mr Lambert.

Mr Andrews said while the description of “table scraps” was a “very colourful turn of phrase”, Mr Lambert’s critism was “in no way based in facts”.

“There’s been very significant support to that industry, whether it be not just cuts to payroll tax, but full refunds of three-quarters of a year’s payroll tax back in their bank account [or] numerous payments of up to $30,000 for some of these venues.

“I would respectfully put it to whoever made that comment and any of their members that the best thing I can do for restaurants is make sure people are in work, so they can turn up and be customers at those restaurants.”

Earlier on Wednesday, Mr Andrews was repeatedly questioned over a missing budget paper which ordinarily reveals spending on major projects. The state opposition has claimed its absence amounts to “censorship”.

“Not at all. That is absolute nonsense,” Mr Andrews told Nine’s Today program.

On Tuesday Mr Pallas said the papers had not been produced because the state’s project pipeline was being reviewed in light of changes to timelines and costs brought on by the pandemic.

The Premier reinforced that line on Wednesday.

“It is really challenging to get a handle on exactly what the impact of COVID has been in terms of how much work has been done, what the different costs impacts have been,” he said.

“Let’s not forget this budget has been delayed. We will have another budget in 5½, six-months time and we will provide all that detail then.”

Mr Andrews said criticisms from the opposition over the missing document – which last year ran to 189 pages – “missed the point”.

Plans outlined in the budget will create 400,000 new jobs by 2025 and drive investments in mental health, schools, hospitals, roads, and rail, the Premier said.

The budget was mostly well-received by industry and other interest groups, but the state opposition said Mr Pallas’ effort failed to provide enough jobs and left struggling Victorians without hope.

Treasury estimates 200,000 Victorian jobs were lost during the first round of coronavirus restrictions in April and May and 73,000 more in the second wave in August and September.

The jobless rate is expected to peak at more than 8 per cent by the end of 2020, with women and young people bearing the brunt, and is forecast to remain well above 5 per cent for at least four years.

With Noel Towell and Craig Butt