Treasurer David Janetzki’s debt bomb projection overshot by $20bn, S & P Global says
A top credit rating agency says David Janetzki’s $200bn debt projections are “too high” as Labor slams the figures as “over egged”.
Treasurer David Janetzki overshot debt projections by nearly $20bn, a top credit rating agency says, with the Opposition claiming the budget stunt will cost taxpayers $5.2 million.
Queensland’s primary credit rating agency S & P Global predicts debt won’t exceed $200bn when the LNP hands its first budget down in June, a staggeringly $18bn less than Mr Janetzki’s forecast last month.
In his Mid-Year Fiscal and Economic Review (MYFER) Mr Janetzki revealed the state is facing a $45.8bn debt surge, with total debt to reach $217.8bn by 2028 – a significant increase on the $172bn forecast by the former Labor government.
But S & P Global Ratings director Anthony Walker said the debt projection is too high.
“We don’t think that Queensland will deliver that,” he said.
“It could be close to that number. We don’t think it will be above $200bn”.
Mr Walker said the “eye-watering” MYFER figures were “significantly worse” than expected and that S & P would be investigating the “true story” behind the numbers.
“What we’re trying to do right now, and why we haven’t responded to date, is we’re trying to figure out where we believe the true story is,” he said.
“If you look at the media release attached to that (MYFER), it was all about Labor’s last budget deficits and lies, so we know there is a political narrative within that document.”
The Opposition, which argued that the government over egged the MYFER figures, is now claiming the review was unnecessarily politicised, negatively impacted bond yields.
Queensland currently has $5.2bn in outstanding bonds, with Shadow Treasurer Shannon Fentiman arguing a 0.1 per cent interest rates increase will cost Queensland taxpayers $5.2m.
“That could pay the wages of 60 police officers, 65 nurses or 62 teachers,” she said.
While S & P is yet to properly scrutinise the latest MYFER figures, it expects operating expenses have been “expanded aggressively”.
“We think there’ll be a lot of savings coming out of that when June budget comes out,” Mr Walker said.
It follows warnings from S & P Global directing Queensland to rein in spending, with operating expenses rising by 51 per cent since 2019, exasperated by billions in cost of living rebates and election promises under Labor.
S & P Global may react to the latest MYFER figures prior to the June Budget. There is now an elevated risk of a credit rating downgrade.
Mr Janetzki blamed the Opposition for putting the credit rating at risk.
“Labor talking about the cost of borrowing is beyond laughable,” he said.
“S & P’s report merely confirms our warnings of the last few months and the strong likelihood of not just an outlook downgrade but a rating downgrade.
“Their budget deception was outrageous – but their election borrowing binge on state-owned medical practices, energy retailers and servos should disqualify Fentiman, Miles and Dick from ever holding office again.”
Originally published as Treasurer David Janetzki’s debt bomb projection overshot by $20bn, S & P Global says
‘Spineless, no emotion’: Scathing review of Premier’s first 100 days
Everyday Qlders who were profiled in The Courier-Mail’s exclusive Voter Verdict survey for the election are back to give their raw and honest opinions on David Crisafulli’s first 100 days.
Dad reveals THAT phone call; sister’s unimaginable bravery for shark victim
A dad reveals the moment he found out his teen daughter had been taken by a shark as her sister embarks on an incredible act of bravery. WATCH THE VIDEO