Victoria state budget 2026: state back in black forecasting two back-to-back surpluses

Labor’s 2026-27 budget shows state has recorded $700m surplus this financial year, first of its kind since before the Covid-19 pandemic

• Get our breaking news email, free app or daily news podcast

Victoria is back in black for the first time since the start of the pandemic, with Tuesday’s state budget to deliver an operating surplus and forecasting another next financial year.

The 2026-27 budget, to be handed down on Tuesday afternoon, will show the state recorded a $700m surplus in 2025-26, largely in line with December’s pre-budget update of $710m and an improvement on the $611m forecast last May.