Queensland\u2019s treasurer says he\u2019s \u201cnot giving up\u201d on halting a ratings downgrade for the state\u2019s finances after handing down a budget full of red ink, amid predictions state borrowing will top $200bn in three years.<\/p>\n
David Janetzki promised a budget surplus in 2029-30, the year after the state\u2019s next election \u2013 but only after years of billion-dollar deficits.<\/p>\n
Handing down his second budget on Tuesday, Janetzki forecast relatively positive economic growth and a strong labour market despite volatility caused by the conflict in Iran \u2013 and billions more in coal royalties to the state, driven by a 6% rise in exports in 2026-27.<\/p>\n
The state will earn $6.9bn in coal royalties that year alone, up from $4.79bn in 2025-26, according to the budget.<\/p>\n
But despite a forecast recovery in coal prices, the state continues to teeter on the edge of a credit rating downgrade<\/a>.<\/p>\n \u201cLabor\u2019s legacy left us highly likely, or even an air of an inevitability, to getting a rating down grade, but I\u2019m not giving up,\u201d the treasurer said. \u201cWe\u2019re not giving up because we\u2019re making the budget improvements while delivering what we promised.\u201d<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n In February the rating agency S&P affirmed a negative outlook for Queensland government debt, warning of \u201clarge deficits\u201d. It described the state\u2019s budgetary performance as \u201cweak\u201d but refrained from a credit downgrade, saying it expected a return to operating surplus in the 2028 fiscal year.<\/p>\n But Janetzki\u2019s budget forecasts a $1.9bn net operating balance in 2028-29, with state borrowings topping $202bn that year. There would be a $619m surplus the year after, he said.<\/p>\n Key budget measures include:<\/p>\n The state is running a $6.2bn operating deficit this year.<\/p>\n Government revenue will increase 5.1% over the forward estimates, driven by increases in government duties, payroll tax and royalties.<\/p>\n Spending will grow, rising from $100.8bn in 2025-26 to $111.6bn in 2029-30.<\/p>\n The government says it is committed to returning the budget to a \u201cfiscally sustainable position through strong expenditure management\u201d, with expense growth dropping from 4.9% in 2026-27 to an average of 2.6% over the four years to 2029-30.<\/p>\n Half a billion dollars will be saved through better coordinating procurement, reducing the cap on senior executive positions and reduced spending on contractors and consultants.<\/p>\n $119.2bn for new roads, bus projects and rail in the next four years, and other infrastructure.<\/p>\n The state\u2019s 50 cent fare scheme<\/a> will remain and be legislated.<\/p>\n The premier, David Crisafulli<\/a>, said the government had fulfilled his promise of no new or increased taxes.<\/p>\n \u201cWe haven\u2019t taken the easy road, haven\u2019t found justifications to whack people with new taxes under the cover of global crises,\u201d Crisafulli said on Tuesday.<\/p>\n \u201cWe\u2019re on your side, and we\u2019re going to continue to drive down tax, not find new ways to tax you.\u201d<\/p>\n Brisbane\u2019s 2032 Olympics are another challenge for the state budget, though Crisafulli pointed out the state would spend more than twice as much on health infrastructure as it would on the Games.<\/p>\n The government has yet to break down the budget for Queensland\u2019s 17 Olympics venues beyond the global $7.1 figure for the Games as a whole.<\/p>\n Crisafulli defended his decision not to reveal the cost of the projects.<\/p>\n \u201cQueenslanders will get full visibility on every one of those projects,\u201d he said. \u201cRight now, we\u2019re arm wrestling and driving down contract prices.<\/p>\n \u201cI\u2019m very, very confident about the $7.1bn figure for the games venues.\u201d<\/p>\n