Each year the Treasurer prepares the Annual Financial Report of the State of Victoria which is audited by the Auditor-General. Parliament can have confidence in the Annual Financial Report of the State prepared for 2010–11 as a clear audit opinion was issued on 10 October 2011.
In that report, the state recorded a net surplus of $1 646.8 million for 2010–11. This is an improved result on the prior two financial years and reflects improved economic conditions. However, there is upward pressure on expenditure from salaries and wages, interest and depreciation, which is a risk when coupled with decreasing Commonwealth revenue across the forward estimates period. At the same time, the state's debt grew by 8.7 per cent to total $55 634.4 million at 30 June 2011. The state's ability to service this debt is decreasing because debt is growing faster than Gross State Product.
Underpinning the growth in state assets is a rolling $35.9 billion investment program. This report makes comment on the progress in terms of time and cost for projects which exceed $1 000 million. Comments are provided for Building the Education Revolution, Victorian Schools Plan, Victorian Comprehensive Cancer Centre, social housing, the desalinsation plant, Foodbowl Modernisation, Nothern Sewerage Project, myki, new trains and trams, Regional Rail Link, Peninsula Link and major road upgrades.