Queensland Treasurer David Janetzki flags big | Enterprise & Market Information
Queensland is sinking into a larger-than-expected funds black gap, with Treasurer David Janetzki tipped to forecast billions in extra debt during the Mid 12 months Fiscal and Financial Overview.
The replace on Thursday will show the state’s debt hitting $217.8bn by 2028, far past the $172bn forecast by the earlier Labor authorities in its final funds.
It can additionally show an $887m surplus forecast by Labor for 2026-27 financial yr will disintegrate into a $9bn deficit.
An earlier forecast surplus of $2bn for 2027-28 can be anticipated to break down into one other deficit of more than $9bn.
If the forecast holds, Queensland would exceed Victoria’s anticipated internet debt load of some $188bn by 2028.
Mr Janetzki stated the shock replace uncovered “the debt and deficit legacy of the Labor government”.
“When I was sworn in, Queensland Treasury warned me about the significant and growing debt burden,” he stated.
“The finance minister and I asked Treasury to determine every hidden project blowout and every underfunded department service delivery commitment.
“The last few months have revealed the truth of Labor’s debt legacy and funding cliffs for essential services.”
The LNP authorities, led by Premier David Crisafulli, booted Labor from authorities after 9 years in opposition ultimately yr’s October election.
Opposition Treasurer Shannon Fentiman stated the MYFER had being “juiced” by Mr Janetzki for political causes.
“He is making this as bad as possible and then lo and behold in five months time there will be an improvement in revenue and a reduction in the debt forecast,” stated.
“They’ve juiced this up, the identical manner they cooked Cross River Rail to play a political recreation, which might be humorous if it wasn’t severe for Queensland’s borrowing price.
The MYFER offers an replace on the state’s financial health and financial outlook midway by way of the financial yr.
Alongside debt and deficit projections, it presents a normal image of financial growth, employment and new funding allocations.
Decrease revenues from the state’s all-important coal royalties are additionally anticipated to hit authorities coffers, with the royalty haul for 2024-25 anticipated to hit $8bn, a $400m fall from the $8.4bn forecast within the funds.
Decrease world coal costs and lowered export volumes produced the income stoop, the replace will show.
The total MYFER will likely be launched at 1pm.
Extra to come back.
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