Queensland’s economy teeters on edge of ratings downgrade despite coal royalty windfall
Summary
Queensland’s treasurer, David Janetzki, released a budget showing large deficits and rising state debt expected to exceed $200 billion in three years. Despite increased coal royalties and economic growth forecasts, the state faces the risk of a credit rating downgrade but aims for a budget surplus by 2029-30.Key Facts
- Queensland’s state borrowing is expected to top $202 billion by 2028-29.
- The government forecasted a $1.9 billion operating deficit in 2028-29 and a modest surplus of $619 million in 2029-30.
- Coal royalties are expected to rise from $4.79 billion in 2025-26 to $6.9 billion in 2026-27, helped by a 6% export increase.
- The state government predicts a 5.1% increase in revenue over the coming years, mainly from taxes and royalties.
- Spending will grow from $100.8 billion in 2025-26 to $111.6 billion in 2029-30.
- The government plans to save $500 million by better managing procurement, reducing senior executive positions, and cutting contractor costs.
- Queensland government aims to keep the 50 cent fare scheme and prioritizes infrastructure, including $119.2 billion for roads, buses, and rail.
- The upcoming Brisbane 2032 Olympics budget remains partly unclear, but the government is confident in staying near the $7.1 billion venue cost estimate.
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