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 +61 7 3085 7417.