Queensland Treasurer David Janetzki has announced a worrying financial outlook for the state, with per capita debt expected to soar to $40,000 within three years—making it the highest in Australia. The total debt is projected to climb to $217.8 billion by the 2027-28 financial year, impacting every Queensland resident, including children.
The government faces challenges in fulfilling its promise to reduce debt without cutting essential services. The rise in capital project costs, estimated at $22.6 billion over the next three years, is attributed to overruns in health, transport, energy, water, and port projects. Janetzki has accused the previous Labor government of obscuring the true financial state of Queensland and neglecting funding for essential services.
Moreover, there are concerns that the state’s AA+ credit rating could be downgraded, potentially leading to higher borrowing costs for taxpayers due to increased interest rates. The Deputy Opposition Leader, Cameron Dick, has questioned the reliability of these figures, suggesting they may prepare the ground for the LNP to fail in keeping its election commitments.
Janetzki declared the current budget update as a critical point for the government, emphasising a disciplined approach to managing expenditures and the urgent need to stabilise Queensland’s finances.