Qld $9bn budget blowout biggest since Anna Bligh was premier
The state government has blown its budget by $9bn in the last financial year, in the largest unexpected annual overspend since Anna Bligh was premier.
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The state government has blown its budget by $9bn in the last financial year, in the largest unexpected annual overspend since Anna Bligh was premier.
The $9.07bn could ensure every part of the Bruce Highway meets the basic three-star safety standard and is $2bn more than the venues budget of the 2032 Olympic and Paralympic Games.
The bulk of the cash was consumed by Health, Regional Development, Transport and Main Roads, and Energy and Climate according to the government’s latest Consolidated Fund Financial Report which revealed the overspend was spread across 20 departments and entities.
It is the first time since 2010-11 unforeseen expenditure has been this high, with the figure previously averaging $1.4bn a year since Labor came back into power in 2015-16.
Documents from the Bligh era revealed the bulk of its $9.3bn unforeseen spend in the 2010-11 year came from the government paying back loans tied to the sale of QR National – the former publicly owned rail operator now known as Aurizon – and the Port of Brisbane.
In the recent financial year, Treasury had written into the budget plans to hand out about $78bn to department and entities, with the $9.07bn overspend marking a 10 per cent increase.
The state government has argued about half of the expenditure was cash that had been centrally held in anticipation of being allocated to departments for projects or staffing across health, energy, and roads.
This included $690.5m in unforeseen operational spending for Queensland Health, which included paying for increased wages as part of enterprise agreements and 200 additional Queensland Ambulance staff.
Transport and Main Roads received a $1.15bn injection in funds over and above what was budgeted to pay for the cost of projects like the Varsity Lakes to Tugun M1 upgrade, buying up property for transport corridors and other road upgrades including to the Bruce Highway. Electricity rebates giving every Queenslander $1000 off their power bill accounted for about $2bn of the government’s 2023-24 unforeseen expenditure.
But shadow treasurer David Janetzki seized on the eye-watering sum to accuse the state government of being irresponsible economic managers.
In response, Treasurer Cameron Dick noted the Opposition had voted to support the majority of the unforeseen expenditure as part of the usual budget appropriation bills.
“The LNP voted in June and August to support more than 92 per cent this expenditure,” he said. Mr Dick’s office has also argued a significant portion of the extra spend – $6.15bn – was outlined in July as part of the budget estimates process.
Mr Janetzki slammed Mr Dick for the “jaw-dropping $9bn budget blowout”.
“His tricky figures simply aren’t worth the paper they’re written on,” Mr Janetzki said.
“This $9bn could have built new hospitals to ease ambulance ramping, major upgrades to the Bruce Highway, or dozens of local congestion-busting road projects.
“Nothing will change unless we change the government, only the LNP will restore respect for your money and will deliver projects on time and on budget.”
One of Opposition Leader David Crisafulli’s key commitments has been to “restore respect” for taxpayer cash, with a promise to deliver projects on time and on budget.
Labor has also been attacking the LNP on its money management credentials in the lead-up to the election.
Mr Dick has repeatedly slammed the price tags the Opposition puts on its promised projects and accused them of “dodgy accounting”.
The LNP’s tax plan, promised two years ago, will be released after the Opposition has made all its campaign announcements.
Other unforeseen expenditure detailed within the Consolidated Fund report includes $304m to the Regional Development, Manufacturing and Water Department to pay for the Fitzroy to Gladstone Pipeline project and Burdekin Falls Dam upgrade.
Queensland police received about $188m for higher wages through new enterprise agreements, to ensure “sufficient liquidity” for the department, and pay for workers compensation premiums among others. The state’s youth justice department received nearly $34m in extra capital expenditure to fund construction of the new Woodford Youth Detention Centre in 2023-24, with the entire project forecast to cost $627.6m once complete by the end of 2026.
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