Coronavirus: ‘Impossible’ to tally Queensland’s COVID-19 cost

Queensland’s top Treasury official has conceded it is ‘next to impossible’ to forecast how large the state’s debt burden will be from the coronavirus crisis.

Queensland Under-Treasurer Frankie Carroll. Picture: Annette Dew

Queensland’s top Treasury official has conceded it is “next to impossible” to forecast how large the state’s debt burden will be from the coronavirus crisis.

The state’s total debt was already calculated to hit $91.8bn in two years before the pandemic hit.

Under-Treasurer Frankie Carroll told a parliamentary committee it would be “irresponsible” to try to estimate how much Queensland would need to borrow to weather the virus: “To try to forecast at this time is next to impossible … it would be irresponsible to put a number on it.”

He said all states, territories and the federal government were in the same situation, and were unable to accurately forecast revenue, expenditure or borrowings.

Queensland has legislated for a $4.8bn stimulus response to the pandemic, including $1.2bn in extra health and hospitals funding, $300m for households and a $500m workers’ aid package.

Mr Carroll said that would be funded by a mix of borrowings and public service cuts, including a pay freeze for all public servants for the 2020-21 financial year, expected to save $500m. Spending on consultants, advertising and travel would also be targeted.

The government’s pre-election budget was scheduled to be delivered on April 28 but was cancelled indefinitely because of the pandemic. Mr Carroll said Treasury would need to wait until restrictions were eased and some normality returned to the economy before it could be delivered.