Qld politics: Budget ‘horror story’ sparks Labor backlash

Experts say the state government has used inflated projections to manage Queenslanders’ expectations over the June budget.

Treasurer David Janetzki in Parliament on Monday. Picture: Tertius Pickard/NCA NewsWire

Queenslanders will be delivered “chilling” financial news in the weeks leading to the state budget, as Premier David Crisafulli hinted at a worsening multibillion-dollar deficit.

Mr Crisafulli cast blame on unfunded programs from the former Labor government, which could further pressure the budget deficit, projected in January to be $6.9bn.

It was also projected to climb to an eye-watering $9.2bn in the following two financial years.

Economic consultants believe unpopular financial decisions may need to be taken in Treasurer David Janetzki’s first budget on June 24, especially to manage a $2.3bn cut in Queensland’s GST revenue.

Adept Economics director Gene Tunny said earlier projections were likely to be an inflated “horror story” to manage Queenslanders’ expectations, and it was LNP’s best opportunity to renege on election promises while blaming Labor’s past fiscal management.

“I mean, I wouldn’t recommend any tax increase, I think taxes and charges are high enough already, but it may well be they may have to do that,” he said.

Shadow treasurer Shannon Fentiman

“The government faces a huge challenge fixing the budget and trying to avoid future credit rating downgrades.

“It’s going to be a huge challenge for them.”

Mr Crisafulli was unprepared to supply the details while the cabinet budget review committee considered its financial situation.

“But one thing I will say is the number of programs that weren’t funded and never told to Queenslanders before the election from the former government, is something that I intend to expose to Queenslanders in the weeks ahead,” he said.

“Some of the things we found have been chilling.”

Shadow treasurer Shannon Fentiman criticised Mr Janetzki for “juicing up” mid-year projections in January, which she said spooked ratings agencies.

She also criticised Mr Janetzki ’s failure to establish Queensland Government Consulting before June 30, which was intended to save $757m through external consultants.

“David Janetzki has no credibility at all, and Queenslanders should be skeptical about any politicisation of the upcoming budget,” Ms Fentiman said.

Originally published as Qld politics: Budget ‘horror story’ sparks Labor backlash