Real-time spending tracker at centre of Coalition pledge on budget transparency

A real-time spending tracker which would allow Victorians to monitor where their tax dollars are being spent will be rolled out as part of a promised overhaul by the Coalition to improve the way public finances are managed.

The expenditure tracker will operate across all government portfolios and be based on an online tool introduced in the United States in 2006 designed to help citizens track public spending.

The reform is part of a package of election promises, to be unveiled by the Coalition on Wednesday, in which they are also pledging to cap net debt as a percentage of Gross State Product and ensure greater transparency over the use of contingency funds and Treasurer’s Advances.

A Treasurer’s Advance gives departments or agencies access to cash to meet urgent funding to pay unexpected bills not forecast in the budget, without the need for parliamentary approval.

This year, The Age revealed that the scheme had handed Treasurer Tim Pallas a $12.1 billion “credit card” to pay for non-urgent policy promises, such as the government’s $250 power savings bonus, portions of its free kindergarten promise and funds to cover the cost of the state’s rising interest bill.

Opposition Leader John Pesutto told The Age that Treasurer’s Advances had been “increasingly misused” as a mechanism to fund core government services without appropriate oversight.

“Our plan will help restore the use of Treasurer’s Advance to what they are intended for – emergency and unforeseen expenses,” he said.

With net debt expected to peak at $187.8 billion by the middle of 2028 – equivalent to about one-quarter of the state economy – Pallas is trying to find savings or extra revenue after the government promised an extra $1.5 billion for the state’s ailing public health system.

If elected, the Coalition will legislate a Charter of Budget Honesty, which will bind future governments to be accountable to their fiscal strategy, which will be reported against twice a year. A strengthened Parliamentary Budget Office will then be tasked with producing annual performance reports to make sure governments stick to their strategy.

The Opposition will also adopt some of Canberra’s bureaucracy by establishing the Victorian Productivity Commission which will be tasked with releasing intergenerational reports.

They will examine the long-term factors affecting the Victorian economy and be updated every five years.

“Our state’s first intergenerational report will inform decision-making and guide long-term investments to grow and strengthen our economy for generations to come,” Pesutto said.

The promised changes are part of the Opposition’s response to a discussion paper launched last year on the economy, which will form the basis of the Coalition’s pitch to overhaul the tax system if elected in 2026.

Pesutto said the changes would improve the integrity, accountability and transparency of Victoria’s public finances.

The first tranche of the Opposition’s financial pitch comes ahead of the Allan government’s new economic growth statement, due to be released next month.

Pallas flagged the statement in May’s state budget, promising it would “drive higher economic growth, productivity and living standards for all Victorians”. But business leaders have criticised the government amid reports the statement is no longer expected to include tax reform and will instead focus on cutting red tape.

On Tuesday, Assistant Treasurer Danny Pearson insisted the state government “had a plan for growth”, and listed the 12-month stamp duty discount for off-the-plan apartments or townhouses as an example of tax reform.

“The Victorian government is incredibly robust and strong because this is a fantastic place to live and work and raise a family,” Pearson said.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.