The state of Victoria in Australia has withdrawn as the host of the 2026 Commonwealth Games due to financial difficulties caused by the COVID-19 pandemic and excessive government expenses. Victorian Premier Daniel Andrews announced the decision on July 18, citing a significant increase in cost estimates. The original budget of $2.6 billion has now ballooned to over $6 billion. Andrews expressed concerns about adequately funding the Games and stated that the high cost does not justify the benefits. As a result, the state Labor government will allocate a $2 billion package to ensure regional Victoria still receives the intended benefits. This package includes funds for regional housing and tourism and will proceed with the planned sporting infrastructure projects. The state’s decision has caused shockwaves within Australia and the sporting community, highlighting the state’s poor financial situation. Victoria has accumulated substantial debt during the pandemic and has introduced a repayment plan to settle the amount owed over the next decade. Despite the financial challenges, the state government remains committed to expensive infrastructure development. Furthermore, delayed and costly infrastructure projects have added to the state’s budget pressures. The cancellation of the Commonwealth Games has been seen as a humiliating move for Victoria, damaging its reputation as a global events leader. Critics have criticized the Andrews government for mismanagement and failing to properly assess the costs. State Opposition Leader John Pesutto and Nationals Leader Peter Walsh expressed their disappointment, while federal Senator Ralph Babet highlighted the state’s excessive debt. However, Prime Minister Anthony Albanese maintained a diplomatic stance, stating that the decision rests with the state government.