Victoria is expecting the economic damage of the coronavirus pandemic to be about 140 times worse than the impact of the bushfires on the state's bottom line.
Treasurer Tim Pallas said January's devastating fires were expected to impact about 0.1 per cent of Gross State Product, but advice from Treasury was the unfolding coronavirus crisis would shrink the economy by about 14 per cent.
Rather than the surplus which was forecast in last year's budget, the state's deficit for the first three-quarters of the financial year is is $773 million.
Mr Pallas said the nine months to March had been affected by the bushfires, which saw a $500 million hit to the economy.
"This is not the time for any government to be chasing surpluses," Mr Pallas said.
It comes after it was confirmed more than 594,000 people across Australia lost their jobs in April, with more than 127,000 of those in Victoria.
The state's jobless rate rose from 5.2 per cent in March to 6 per cent in April.
Mr Pallas said the figures were "nothing short of devastating" and said "hidden" in the figures were people who had given up entirely on looking for work in the current labour market.
Victoria has been one of the states hardest hit by the pandemic due to its heavy reliance on tourism and higher education, two sectors struggling without international tourists and students.
It is also the state moving most slowly in the easing of restrictions, with hospitality businesses remaining closed to dine-in guests until at least June.
More to come.
https://news.google.com/__i/rss/rd/articles/CBMia2h0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDIwLTA1LTE1L2Nvcm9uYXZpcnVzLWltcGFjdC1vbi12aWN0b3JpYW4tZWNvbm9teS10b3VyaXNtLWpvYmxlc3NuZXNzLzEyMjQ5NDk40gEnaHR0cHM6Ly9hbXAuYWJjLm5ldC5hdS9hcnRpY2xlLzEyMjQ5NDk4?oc=5
2020-05-15 00:28:36Z
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