Treasurer Cameron Dick vows to protect key projects and public service jobs despite looming debt bomb

The under-pressure state government is set to run the rule across its spending ahead of a “difficult” state budget in what shapes as the last until the October election.

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Ballooning infrastructure projects and public sector jobs aren’t on the chopping block despite a looming debt bomb Treasurer Cameron Dick has vowed.

But belt tightening could hit public sector agencies, as the under-pressure state government runs a ruler across its spending ahead of the June budget.

Preliminary treasury forecasts have revealed Queensland’s net debt will quintuple to $73bn between now and 2027/2028, with gross general government debt to hit $128bn. Total debt will spiral to $188bn.

The eye-watering figures have been described by economists as a significant deterioration, though they also argue Queensland remains in far better shape than New South Wales and Victoria.

The new preliminary figures have prompted Mr Dick to concede the upcoming state budget — the last before the October election — “will be difficult”.

Mr Dick affirmed there wouldn’t be cuts to infrastructure projects or public service jobs.

“We will be running a ruler very carefully over every single budget submission we received from every single department and where I expect departments to do more to give back to Queenslanders I will deliver that,” he said.

“I want to be clear, this is manageable for us.”

Deputy premier Cameron Dick speaking at Question Time. Picture: Lyndon Mechielsen

Mr Dick also promised a record cost-of-living relief package in the budget, signalling the government was willing to go “into a deficit to keep Queensland families and households in surplus”.

Independent economist Saul Eslake said the new treasury forecasts was a “significant deterioration” but Queensland remained in a “better position” than Victoria or New South Wales.

Brisbane-based Gene Tunny from Adept Economics also said it was a “big acceleration” in the state’s debt and warned it would be concerning if the increase was due to the government borrowing in order to pay for cost-of-living relief.

Mr Eslake also warned the state government needed to carefully consider the cost-of-living relief measures it would provide to best benefit Queenslanders, noting power bills were not slated to increase significantly in the coming financial year.

“Supposedly the budget was going to return to an operating surplus by 2025/26, my guess is he’ll have to say ‘actually no we’re not going to’ and that ought to argue for being very cautious about splashing a whole lot of money around,” he said.

Opposition treasury spokesman David Janetzki took aim at the government for failing to “rein in project cost blowouts” and this had “inflicted serious damage to the state budget”.

Mr Janetzki vowed lower debt and greater discipline on spending under an LNP government to “end wasteful cost blowouts”.

Originally published as Treasurer Cameron Dick vows to protect key projects and public service jobs despite looming debt bomb