Queensland forecast to record budget deficit of $3bn. Economists explain what's to blame

Queensland is forecast to record back-to-back deficits over the next two years, in what the state government says is a deliberate move to support those struggling with the cost of living .

Queensland Treasurer Cameron Dick blames record spending on health and housing as reasons for the deficit, along with yet-to-be-announced cost-of-living relief."If our budget has to go into deficit to keep your household budget in surplus, then that is what we will do," Mr Dick told state parliament on Tuesday.

"Never has a Queensland Government spent more, borrowed more, or taxed more and left Queenslanders with less to show for it," he said.Independent economist Saul Eslake says governments often make conservative assumptions about coal prices. Coal royalties generated an additional $8.6 billion in revenue for Queensland in this and last financial year.

Mr Dick told the ABC modelling from Queensland's treasury on Brisbane's CPI showed the electricity rebates could be used to reduce inflation by about another one per cent.Joe Branigan from Tulipwood Economics says a deficit means there will be less money available to spend on government frontline services, like teachers."Deficits force the government to prioritise spending and keep to a budget constraint."Treasurer Jim Chalmers has handed down the government's third budget.

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Queensland Government Queensland Budget Cost Of Living Budget

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