Lead

Queensland Treasurer David Janetzki has handed down his second state budget, forecasting a $6.2 billion operating deficit for the current financial year and promising a return to surplus in 2029-30. The budget, delivered on Tuesday, comes as the state faces the prospect of a credit rating downgrade, with borrowing projected to exceed $200 billion within three years.

Janetzki said the budget "strengthens" on the foundations laid by the government last year, while acknowledging the scale of the fiscal challenge. "Labor's legacy left us highly likely, or even an air of an inevitability, to getting a rating downgrade, but I'm not giving up," he said, as reported by The Guardian. "We're not giving up because we're making the budget improvements while delivering what we promised."

Coverage comparison

ABC Australia's coverage focused on the winners and losers emerging from the budget, presenting a neutral summary that highlighted the headline deficit figure. The Guardian's reporting emphasised the treasurer's vow to halt a ratings downgrade, framing the budget against the backdrop of Labor's legacy and global economic volatility. Both outlets reported the same core deficit figure, though The Guardian provided additional detail on borrowing, revenue, and spending projections.

Key claims

  • The state is running a $6.2 billion operating deficit this year, a figure reported by both ABC Australia and The Guardian.
  • Treasurer David Janetzki promised a budget surplus in 2029-30, with a forecast surplus of $619 million, according to The Guardian.
  • State borrowing will top $200 billion within three years, reaching $202 billion in 2028-29, as reported by The Guardian.
  • The state will earn $6.9 billion in coal royalties in 2026-27, up from $4.79 billion in 2025-26, according to the budget and reported by The Guardian.
  • Government revenue will increase 5.1% over the forward estimates, driven by increases in government duties, payroll tax, and royalties, The Guardian reported.
  • Spending will grow from $100.8 billion in 2025-26 to $111.6 billion in 2029-30, according to The Guardian.

Perspectives

Treasurer David Janetzki

Janetzki expressed determination to avoid a credit rating downgrade, attributing the risk to the previous Labor government's legacy. He emphasised that the budget makes improvements while delivering on promises, and forecast a return to surplus in 2029-30.

S&P Global Ratings

In February, the rating agency S&P affirmed a negative outlook for Queensland government debt, warning of "large deficits" and describing the state's budgetary performance as "weak." It refrained from a downgrade, expecting a return to operating surplus in the 2028 fiscal year, as reported by The Guardian.