Key factors behind $9bn state government budget blowout revealed

The key factors behind a $9bn state government budget blowout last financial year have been revealed.

• Analysis: Priorities out of whack
• What you said about blowout

Energy rebates, hiring more public servants and paying for more infrastructure projects were the main factors behind the state government budget blowing out by $9bn last financial year.

And analysis of the government’s financial records show the figure – already the highest since Anna Bligh was premier in 2010-11 – could have been higher if certain big ticket projects weren’t falling behind schedule.

With Premier Steven Miles making cost-of-living relief a signature election policy, Treasurer Cameron Dick defended the decision to spend more than $2bn handing out $1000 energy rebates to Queenslanders, arguing he had been transparent about spending levels.

Opposition leader David Crisafulli, who is yet to outline the LNP’s financial plans, seized on the staggering $9.07bn unforeseen expenditure as proof the government had no respect for taxpayer dollars.

Treasurer Cameron Dick and Premier Steven Miles. Photo: Dan Peled / NewsWire

The unexpected spend was detailed in the Consolidated Fund Financial Report.

It shows one of the biggest expenses was about $2.1bn for the energy rebates, with another $2.2bn funnelled to departments for increased operation expenses.

This ranged from paying public servants more as part of the state government’s generous “cost of living adjustment”, to increasing funding for programs across housing, health and domestic and family violence.

The Transport and Main Roads department accounted for $1.32bn of unforeseen spending, a whopping $1.15bn to pay for increased project costs.

And the report shows the figure could have been higher, if new trains and signalling systems for Cross River Rail weren’t falling behind schedule.

“These were partly offset by timing adjustments for various programs including operational readiness of the New Generation Rollingstock fleet for Cross River Rail and European Train Control System,” the report stated.

Mr Dick, speaking to ABC Radio Brisbane, said he had been “plain and clear” about the size of the unforeseen expenditure through the budget estimates process and the usual budget appropriate process.

And he doubled down on criticism of the LNP, accusing its leader David Crisafulli of having “$10bn in unfunded promises”.

“He’s also said he’s going to cut taxes and lower debt. The only way you can spend more, tax less, and cut debt, is to do broad scale cuts across government. And that’s just the truth,” Mr Dick said.

Mr Crisafulli, speaking in Cairns, did not say when he would release his tax plan and instead said: “Debt will always be lower under the LNP” because ministers would be “held accountable for delivering on time and on budget … Queenslanders have lost faith in the government’s ability to deliver things on time and on budget”.

Originally published as Key factors behind $9bn state government budget blowout revealed