Batteries, baby vows as Vic deficit rises

Billions of dollars have been promised as part of the Victorian state election campaign but new data shows the state's finances are worsening.

In the space of 10 days, Victoria's budget deficit forecast has blown out by $500 million after the state government spent up on flood recovery and a sports sponsorship deal.

The Department of Treasury and Finance released the state's Pre-Election Budget Update on Thursday after Treasurer Tim Pallas unveiled the Victorian Economic Fiscal Update last week.

It shows Victoria is on track to post a deficit of $10.2 billion this financial year, up from the $9.7b estimate in the earlier report.

The rise has been attributed to the Andrews government setting aside an extra $500m to meet the "immediate needs of flood-affected communities and support the emergency response".

It also accounts for Visit Victoria's $15 million sponsorship agreement with Netball Australia, unveiled the day before the government entered caretaker mode on November 1.

Net debt projections have marginally risen for this financial year ($115.6b to $116b) and to June 2026 ($165.4b to $165.9b) while forecast tax revenue for 2022/23 remains unchanged at $678m.

In a statement, Mr Pallas said the state's net debt position was reflected by the government provisioning $1b of support for flood-affected communities so far.

"We're on track to deliver a surplus of $870m by 2025/26 - surging ahead of forecasts earlier in the year," he said.

But shadow treasurer David Davis said Victoria's net debt was still forecast to be more than NSW, Queensland and Tasmania combined by mid-2026.

"That is a huge increase in debt and it's debt that impacts on the ability of the state to provide the services, and provide the infrastructure, we need," he told reporters at state parliament.

Earlier, Premier Daniel Andrews was ramping up his election rhetoric on energy by promising $42m to install 100 neighbourhood batteries across the state within the next term if Labor is re-elected on November 26.

"We think about 25,000 households will benefit from this," Mr Andrews said at a bowls club in the seat of Bayswater, held by Labor on a wafer-thin margin.

Fifteen of the batteries will initially be installed in Melbourne and 13 in regional Victoria, with the location of the rest to be confirmed at a later date.

The batteries are expected to triple the number of Victorian homes with access to storage, allowing more to return surplus solar-generated electricity to the grid through feed-in tariffs.

Labor has already vowed to re-enter the energy market with the revival of the State Electricity Commission and set a renewable energy target of 95 per cent by 2035, if returned.

Liberal Leader Matthew Guy, meanwhile, was focusing on health as the coalition pledged to cover the cost of IVF and egg freezing for women with serious medical concerns.

About 3000 women and girls with cancer, endometriosis and other gynaecological conditions would be eligible for grants of up to $7000 under the plan, expected to cost $21m over four years.

"We want to take away that cost for young women and girls," Mr Guy said at Monash IVF's Clayton clinic.