Victorian Premier Jacinta Allan was warned about the Commonwealth Games cost blow-out four months before its cancellation, an inquiry has heard.
The evidence was given on the first day of public hearings at a state upper house inquiry into Victoria's shock decision to axe the games.
Department of Jobs, Skills, Industry and Regions secretary Tim Ada told the inquiry that the event's costs had nearly doubled from $2.6 billion in March 2022 to $4.5 billion a year later.
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Ada found the business case did not "reflect the true cost of delivering a sporting program spread across five cities".
He said the case relied on "top-down estimates and benchmarking against known amounts from the 2018 Gold Coast Games".
Ada said in early March, the department briefed Allan on the "revised budget requirements to deliver the Games".
"An updated budget estimate of $4.5 billion was not approved, with the department asked to further explore opportunities to reduce costs while still meeting the government's commitment to host the Games in regional Victoria."
Between April and June, the government worked to put together a new budget, however, it became clear there were risks emerging as planning progressed, Ada said.
He said another revised budget submission of $4.2 billion was made by the department but it had not been approved.
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Former Premier Daniel Andrews made the shock announcement to cancel the games four days later, on July 18.
The cost of cancelling the games will cost taxpayers $380 million, after the government reached a settlement with the federation.
The inquiry also heard from Commonwealth Games chief executive Jeroen Weimar, who revealed he was still on the payroll.
"The vast majority of our staff have been made redundant, there are a handful of us left as we do the final closeout," he said.
He said the organising committee became concerned about the cost blowout.
"Through our work, it became clear by the middle of February it would not be enough."
"We had very little room for planning and for consultation and for contingency."
While Weimar knew costs were rising, the inquiry heard the state's top public servant Jeremi Moule uncovered the cost blowout.
"It was the advice of my department provided by me personally to the Premier that gave the government cause to reconsider the delivery of the Games," he said.
The inquiry will formally "request the attendance of Premier Allan" at a public hearing.
Allan has maintained she will not be appearing before the inquiry.
Committee Chairman David Limbrick said the government needed to be held accountable and said "a lot of questions" needed answers.
"I hope the Premier will consider the invitation," he said.
The public hearings continue, while an interim report is due to be handed to parliament by the end of April 2024.
