Last Tuesday the Queensland government tabled its 2015/2016 budget forecasting a $962m operating surplus in 2014/2015 and a $1.2bn surplus in 2015/2016. The 2015/2016 borrowing requirement will be $6.5bn or about 8% higher than the 2014/2015 requirement of $6bn, assuming a $1bn inflow as a result of budget measures.
Gross Qld govt debt per person
Gross state product is forecast to grow at 4.5% which is up from the previous year’s recorded 2.3% while expenditure is expected to increase by 4.3%. Borrowing will fall from $43.2bn in 2014/15 to $38.1m but this is mostly from shifting debt to government-owned businesses. Pressure on the level of state debt will be eased by a suspension of defined benefit contributions for public servants, which will go some way towards offsetting an expected $3bn reduction in the amount to flow from mining royalties.
Queensland treasurer, Curtis Pitt said S & P and Moody’s “initial response was one of no change”. Queensland currently has a AA+ rating from S&P and Aa1 rating from Moody’s.
