Victoria exceeds expectations with $316 million budget surplus Victorian Treasurer Michael O' Brien. VICTORIA has returned a $316 million budget surplus in the past financial year, more than $100 million above expectations. Premier Denis Napthine and Treasurer Michael O'Brien today presented the state's 2012-13 annual financial report, which found the net debt, as a proportion of the gross state product, was 5.8 per cent. The state's $316 million budget surplus was much higher than the $177 million predicted and came amid a drop in tax income. We are very proud of the fact that we have delivered a sound, healthy budget surplus. We're very proud of delivering responsible financial management," Dr Napthine said. He said the Government had managed to also deliver improved services for the health and education sectors and increased police. Can I also say that the annual report shows an expenditure in the 2012-13 financial year of $5.2 billion for infrastructure and I'm pleased to say in this year's budget, the 2013-14 budget, that has been boosted to $6.1 billion of infrastructure. The state's expenditure grew by 2.1 per cent, which Dr Napthine said was below the 8 per cent average under the former Labor Government. Mr O'Brien said every other state, and the national budget, was either in or predicted to enter into a deficit over the next four years. "There's no doubt that the national economy is still a little bit soft and that does affect us in terms of revenue," he said. Victoria's employment grew by 0.9 per cent in 2012-13 which was higher than the forecast. Tax income dropped by about $90 million, mainly due to falls in income tax and gambling taxes. The full report is due to be released later today.