Victorian Treasurer Jaclyn Symes was cautiously optimistic while delivering her second budget on Tuesday, with the state narrowly avoiding posting a $200 billion net debt projection.
The budget forecast Victoria's economy to grow by 1.5 per cent this financial year, followed by two per cent in 2027/28 and 2.5 per cent over the following two years.
Annual inflation is slated to peak at 3.5 per cent in 2026/27 despite the Reserve Bank raising the cash rate to 4.35 per cent just hours after the budget was handed down.
Ms Symes denied treasury's estimates painted a "more rosy" outlook than other jurisdictions, with the budget predicting the cost of oil to fall to $US70 a barrel by December.
"This is not a unique assumption in Victoria," she told reporters.
"But of course we have allowed in our sensitivity analysis for a ... less rosy outlook in terms of if the war would to continue in the Middle East."
Ms Symes will address Victoria's business community on Wednesday at an event in Melbourne.
The budget earmarked $432 million for free and half-price public transport fares, $760 million for a 20 per cent rebate on light vehicle registration and $100 million to upgrade bus routes.
Despite the welcome cost-of-living support for households, business leaders pointed to the limited relief for small businesses grappling with similar economic pressures.
Committee for Melbourne chief executive Scott Veenker described the budget as a missed opportunity.
"There just weren't enough initiatives there to really help businesses have confidence and really enable Melbourne to get its mojo back," he said.
"On the bright side, there were no new taxes so that gives our members some confidence."
Net debt is expected to top $199.3 billion by mid-2030, pushing interest repayments to more than $32 million a day.
"We are very concerned with the rising debt levels," Victorian Chamber of Commerce and Industry chief executive Sally Curtain said.
"It raises more questions than answers."
While there was cash for train and bus services and hospital upgrades, there was no fresh big ticket items for regional Victorians.
With the state election six months away, Victorian Nationals leader Danny O'Brien criticised a $100 million funding commitment to upgrade the Country Fire Authority's ageing fleet being spread over 10 years.
"This budget is already unravelling as fast as a ball of wool at a kitten convention," he said.
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