The projected costs of the games set to exceed the initially budgeted amount of 2.6 billion Australian Dollars.
Premier Dan Andrews made a statement that his government was not willing to take money away from hospitals and schools in order to fund an event that they estimated would cost up to 7 billion Australian Dollars.
The Commonwealth Games federation has expressed its disappointment with the decision and stated that they were only given eight hours notice of it. The federation also accused the Victoria government of increasing costs by including more sports and changing venue plans, against their advice.
However, Craig Phillips, chief executive of Commonwealth Games Australia, said that the projected cost overrun is a gross exaggeration. After Victoria’s withdrawal, Australia has been looking for a new host within its borders. The governments of New South Wales, South Australia, and Western Australia all declined any approach to the matter due to financial constraints on their respective budgets.
