Public wages help drive $7.9b state spending surge

Victorian government spending increased by $7.9 billion compared to the previous year. (Joel Carrett/AAP PHOTOS)

Total spending by the Victorian government hit $112.1 billion over the past 12 months, exceeding budget expectations by $891 million.

All up government spending increased by $7.9 billion, or 7.6 per cent on the year before, according to the 2025-26 Annual Financial Report, published on Thursday by the state's Treasury and Finance Department.