Adept Economics has prepared a new report on the outlook for Queensland’s state budget and debt for the Australian Institute for Progress (AiP):
Qld Budget Update report 24 September 20
Key points include:
- The Queensland Government released its COVID-19 Fiscal and Economic Review (C19-FER) on 7 September 2020. Such a review would normally provide full budget estimates, but this one only provided an update of Queensland’s public finances for the year’s 2019-20 and 2020-21.
- This report uses the C19-FER budget estimates and extends the analysis to incorporate budget estimates for the full forward estimates period including the years 2021-22 to 2023-24.
- Total gross debt in the Non-financial Public Sector is expected to increase by approximately 59%-66% from $71 billion (in 2018-19) to $113 billion to $118 billion (worst case) before the middle of the decade. General government debt will increase by 124%-140% in the same period to $72-77 billion and will have to be directly serviced by the operating budget, resulting in higher interest payments that will detract from frontline services or require higher taxes in the future.
- Growth in net debt in the General Government sector is estimated to almost triple from around $14 billion in 2019-20 to over $40 billion in 2022-23.
The report was written by Adept Economics Director Gene Tunny and Senior Associate Joe Branigan.
For further information, please get in touch with Adept Economics on 1300 169 870 or via email email@example.com..