The upcoming fiscal report will pinpoint the state’s debt ballooning to $217.8 billion by 2028. This surpasses the previous projection of $172 billion made in the last budget by the Labor government, indicating a stark financial challenge ahead.
Queensland, under the new government headed by Premier David Crisafulli, has discovered a forecasted $887 million surplus for the 2026-27 fiscal year transforming into a staggering $9 billion deficit. Furthermore, a previously expected $2 billion surplus for the 2027-28 fiscal year is now projected to tumble into another deficit exceeding $9 billion.
Surpassing Victoria, Queensland appears on track to exceed an anticipated net debt of $188 billion by 2028. According to Janetzki, “the debt and deficit legacy of the Labor government” is now fully exposed.
Upon assuming office, Janetzki disclosed that, “Queensland Treasury warned me about the significant and growing debt burden.” The Treasurer, along with the finance minister, embarked on a mission to uncover all undisclosed project expenses and service delivery deficiencies inherited from previous administrations, shedding light on financial challenges.
Janetzki criticized the Labor administration, stating their tenure left behind “hidden project blowout and every underfunded department service delivery commitment.” By unveiling these layers, the new administration seeks to rectify the financial path forward.
Shannon Fentiman, Opposition Treasurer, speculated that the severity of the numbers was intentional for political maneuvering by Janetzki. She cautioned, “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.”
Queensland’s new administration, after taking charge following nine years of Labor governance, finds itself in a complex financial scenario. This revelation comes amid lower revenues driven by reduced coal export volumes and declining global prices—a crucial concern for a state reliant on its resource sector.
The MYFER update provides crucial insights into the state's economic status mid-year. Alongside debt and deficit figures, the review reflects broader themes of economic growth, employment, and government funding allocations. An anticipated decline in coal royalties, from a projected $8.4 billion to $8 billion for 2024-25, underscores the fiscal pressures stemming from fluctuating resources.
Sources: Information originally published by Duncan Evans at NCA NewsWire.
