Treasurer Cameron Dick fights back against debt ‘myth’

That is about double the figure borrowed just last financial year before the coronavirus ravaged the world’s health and economic systems.

The interest bill alone on that debt will be almost $2 billion a year in 2023-24, or $5 million a day.

You could argue these are unprecedented times which demand an unprecedented response – and you’d be correct.

The effects of COVID-19 have left a gaping hole in Queensland’s revenue streams.

Over the four years to 2022-23, total revenue is expected to be $12.28 billion lower than forecast in December last year.

Taxation revenue is down $4.52 billion over four years, GST is down $3.80 billion and royalty revenue is down $4 billion.

Mounting debt is nothing new – Queensland’s debt has been creeping up for many years, with $90 billion predicted in 2019 over the forward estimates and $70 billion the previous year.

Government debt deserves to attract strong scrutiny and Opposition Leader David Crisafulli has already promised to make the next election fight in 2024 all about the economy.

However, Mr Dick has argued it is imperative to borrow now and “reckless and irresponsible to promise a budget surplus” – an expected $234 million surplus for this financial year has been turned into an $8.63 billion deficit.

“For nearly a decade, Queensland politics has been haunted by the false argument that debt in Queensland was somehow inherently more dangerous and damaging than debt borrowed anywhere else, or borrowed by anyone else,” Mr Dick said.

“Today is the day that myth is finally and conclusively dispelled.

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“When Australia begins to exit this pandemic, Queensland will have the lowest debt of east coast states, even if you include all the borrowings of our government-owned corporations and statutory authorities.”

Mr Dick argued doing anything other than borrowing to rebuild would condemn the budget to “years of austerity”, a slower and more painful recovery and higher unemployment, pointing to current low interest rates as a reason for more debt.

“There’s never been a better time to borrow to rebuild with interest rates as low as they’ve ever been,” he said.

This is a budget with “no surprises”, according to the Treasurer, coming just more than a month after the state election.

However, after the COVID dust settles, the Palaszczuk government will need to craft the vision of its enduring legacy, having won a third term and securing the state’s first four-year fixed term.