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Vic debt would be lower under Libs: report

Victoria's debt would have been lower under a Coalition government if Labor had lost the recent state election, a post-poll report says.

However, Labor argues the finding is negated by a $10 billion hole in the Coalition's costings.

The Parliamentary Budget Office's report found the Coalition's election platform was capable of reducing net debt by 6.2 per cent in 2025-26, compared with the debt forecast in the latest budget update.

Labor's plan was forecast to reduce debt by 0.6 per cent under its election plan.

The report pointed to the Coalition's plan to drive down debt by raiding Victoria's future fund as a major contributing factor behind its lower debt.

However, Treasurer Tim Pallas said it also made clear there was a $10 billion hole in the Liberals' costings.

"All that the parliamentary budget officer has had to say has been negated by the fact that he now acknowledges that there was a $10 billion hole in the way that the Coalition effectively put together their costings," Mr Pallas said.

"That future fund could not have been flipped into the debt and surplus side of the balance sheet."

The state's debt has skyrocketed in recent years, with the report showing that by 2025-26 it would remain at a level more than four times higher than in 2018-19.

The report showed that during the next four years and beyond, household budgets were going to be put under more pressure, Opposition leader John Pesutto said.

"We know from these reports, which confirm earlier and existing concerns about the growth in Victoria's debt, that debt will continue to grow, that taxes will continue to grow and our interest expense will continue to grow," he said.

"(The government) needs to work harder to pay attention to some of the pressures and challenges that Victorian households are facing."

While Victoria's net debt would be lower in 2026 than the latest budget predicted under either party, the differences represented "relatively modest reductions to a continued increasing net debt forecast position over the medium term", the report said.

Regardless of what party was in power, the budget office expected Victoria to retain the highest net debt to GSP ratio of any Australian jurisdiction - more than 50 per cent higher than the second-highest state.

"This means that in the 60th parliament, either party would need to dedicate a greater proportion of revenue to servicing the debt burden than in the last parliament," the budget office said.

The debt position would make it harder for future governments to respond to economic shocks, the report said.

Labor announced 82 policies and the Liberals and Nationals unveiled 112 before the November state election, with Labor ultimately coming up trumps.

As for policy areas, health and economic affairs came in the top two for budget impact.