The new government in the state of Queensland has blamed its predecessor for cost blow outs and underfunded services which will lead to record budget deficits.
The Liberal/National Party Government - elected in October 2024 - said the operating deficit would deteriorate to $4.9 billion in 2024/25, $6.9 billion in 2025–26 and $9.2 billion in 2026–27 and 2027–28, compared with $1.7 billion in 2023/24.
Treasurer David Janetzki and Minister for Finance Ros Bates said total government debt was forecast to rise from $106 billion in 2023/24 to $218 billion by 2027-28 which, at almost $40,000 per person, was the highest debt burden of any Australian state.
They said the Mid-Year Fiscal and Economic Review (MYFER) outlined how the previous Labor government generated the highest deficits in Queensland history, at $9 billion each year in 2026-27 and 2027-28, driving debt to double in four years.
They said the four year capital program blew out by $22.6 billion, including $4.2 billion in health projects, $4 billion in energy, water and port projects and $3.1 billion in transport projects through to 2028.
“Labor’s mess was a decade in the making, and it is now our challenge to overcome. We are up for that challenge, “Janetzki and Bates said in a media statement.
The Government had already decided to cancel the $37 billion Pioneer-Burdekin pumped hydro project, pause the CFMEU tax, establish the Productivity Commission and set up Queensland Government Consulting.
The Australian Labor Party had been in power for 30 of the last 35 years in Queensland before the LNP was elected on a platform that included tackling a wave of crime by young offenders.
The MYFER includes updated revenue forecasts and costed election commitments net of identified savings, providing a baseline from which to show an improvement to the operating balance across the forward estimates.