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AAP
AAP
Health
Liz Hobday

Vic budget rests on virus containment

Victoria's budget assumes coronavirus restrictions will continue to ease for the rest of the year. (AAP)

Billions of dollars of spending in the Victorian budget to support economic recovery rest on key assumptions about the COVID-19 crisis.

This year's state budget takes place in more uncertain times than usual.

Victoria's unprecedented $90 billion total expenditure over 2020/21 assumes that the state's coronavirus restrictions will continue to ease for the rest of the year, and any outbreaks can be contained.

The Department of Treasury and Finance acknowledges it's an uncertain environment, and says there's a "high degree of uncertainty" around any potential vaccines or treatments.

The budget papers also work on the assumption that international students will gradually return to the state, but that might not happen in significant numbers until the 2022 academic year.

The COVID-19 economic crisis is the catalyst for this big-spending budget, and a fair chunk of the money is going to a health system that was cracking under the strain of the pandemic.

The state budget targets a massive $9 billion at the health system, including hospital builds, an elective surgery blitz, and more money for ambulances.

The government promises to spend the money over the next four years, with $5 billion to be spent in 2020/21.

The government has already spent billions to combat the virus.

During the pandemic the government spent $1.3 billion on intensive care resources, and another $980 million on PPE and medical supplies.

It's confirmed that new facilities that were opened to deal with the pandemic will continue to operate.

The money for hospitals includes $384 million to redevelop Warrnambool hospital, $562 million to expand Frankston hospital, and $217 million for Latrobe regional hospital.

There's also $75 million for planning and early works on a new hospital at Melton, while the government will also buy up land for community hospitals at Cranbourne, Pakenham, Torquay, Whittlesea, Eltham, Fishermans Bend and Point Cook.

Some $300 million will be spent on an elective surgery blitz, to tackle the backlog of surgeries put off because of the pandemic.

Ambulance services will also receive $136 million in extra funding, including $21 million for mobile stroke services.

The shift to telehealth and at-home treatment brought on by the pandemic has prompted a $121 million spend on health and hospital services that can be provided at home, including dialysis, chemotherapy and palliative care.

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