Victorian budget goes into deficit

Victoria's budget has gone into deficit, recording a $1.6 billion turnaround from the same time last year.

For the three months to September 30 this year, the general government sector recorded a deficit of $805 million, compared to a $807 million surplus for the first quarter of 2018-19, the latest financial report released on Friday shows.

The update warns caution needs to be taken in interpreting and projecting potential annual outcomes for the full year because of the uneven pattern of revenue streams.

Significant expenditure categories include employee expenses, which sit for the September quarter at 25.1 per cent of the published budget.

Earlier this week the Auditor General released a report revealing Victoria's debt is expected to balloon by $29.7 billion over the next four years, as the state government continues to borrow cash to fund major infrastructure projects.