Victorian budget 2026: state records first post-pandemic surplus but financial health uncertain as debt nears $200bn

Labor's 2026-27 budget shows $727m operating surplus for this financial year as debt forecast to soar by decade's end

• Winners and losers: Victoria's 2026 budget cuts transport costs and helps parents - but will future generations suffer?

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Victoria has recorded a surplus for the first time since the pandemic but the state's financial recovery remains uncertain with debt forecast to near $200bn in coming years amid global uncertainty.

The 2026-27 Victorian budget, handed down on Tuesday, shows the state recorded a $727m operating surplus in 2025-26, a slight improvement on December's pre-budget update of $710m and the $611m forecast last May.