Victoria is set to record a $1.8 billion higher than expected deficit this financial year but has revised net debt expectations down.
A mid-financial-year update, released on Monday, shows Victoria is forecast to post a $9.68b deficit for 2022/23, up from the $7.86b estimate given in the May state budget.
The state remains on track to return to a marginal surplus of $900 million by 2025/26, the same year net debt was forecast to hit $167.5b.
However, the budget update lowers that figure to $165.4b, with Victoria set to recoup more cash from taxes in coming years.
'Since the 2022/23 budget, taxation revenue has been revised upwards by $678m in 2022/23, $470m in 2023/24, $482m in 2024/25 and $536m in 2025/26," it reads.
Victoria's total net debt by the end of this financial year has also been revised down to $115.6b from $118.5b.
