A $1.4 billion election cash splash by the Queensland Labor government to give children free school lunches will add to a $600 billion state and territory debt pile that is growing faster than federal government borrowings and making it harder for the central bank to reduce inflation.
Premier Steven Miles on Sunday promised to provide free lunches to primary school children if re-elected at a cost of $350 million a year in the latest vote grab from an embattled government fighting to stay alive in an election viewed as a test of Labor sentiment before a federal poll.
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
