Beattie Govt’s prudent fiscal management delivers again

The Beattie Government has recorded a surplus of $3.714 billion for 2005-2006 - up $861 million on the June Budget forecast of $2.853 billion, Deputy Premier and Treasurer Anna Bligh said today.

And for the first time the State’s net worth has topped $100 billion – now $105.035 billion [30 June 2006].

“This represents the highest net worth per capita of any Australian State,” said Ms Bligh.

“These nation-leading results, and our continued Triple A credit rating (the highest level), have been achieved through strong sustained financial management and on the back of a flourishing economy.

“The net debt position has improved on a per capita basis with the State's net debt being negative $5808 per person compared to an average for the other States of negative $290 per person.

“We are the envy of the nation.

“The better than expected position (operating surplus $861 million up on estimate at Budget in June) is due to prudent financial management, as well as positive post-Budget movements in investment markets and modest end-of-year improvements across a range of revenues such as taxation, royalties and GST payments," Ms Bligh said.

“It should also be acknowledged that Queensland's taxation revenue per person was $1848 - compared to an average for the other states of $2234.

The underlying operating surplus in the General Government Sector was $2.366 billion, up $645 million on the budget forecast of $1.721 billion.

“A reaffirmed AAA credit rating, a low-tax state and we continue to beat the national average for all major economic indicators,” said Ms Bligh.

“Our growth forecast, to be more than 4% - has us on track to exceed the national average for the 11^th consecutive year.”

The latest Queensland State Accounts (QSA) show that the State’s economy expanded by 0.7% (trend) in June quarter 2006, to be 3.1% higher over the year. Nationally, economic growth was 0.5% in the quarter, to be 2.3% higher annually.

That same data has business investment (trend) in Queensland up 4.7% in June quarter 2006 (nationally, up 1.2%) while Queensland business investment rose 27.7% over the year (nationally, up 13.0%).

“The State’s economy has shown remarkable resilience, and while drought looms large, our economy has grown and diversified providing opportunity for all Queenslanders.

"Our growth translates into significant gains, especially with jobs.

Queensland's trend rate of unemployment was steady at 4.6 percent last month - its lowest in 30 years."

• The State’s envied fiscal position was further acknowledged on Friday when the Deputy Premier met with Standard and Poors executives in New York.

Global Head of Standard & Poor's Corporate and Government Ratings, Paul Coughlin, said that: “Among state and regional governments around the globe it (Queensland) has few peers in terms of its commitment to funding current spending and pension obligations from current revenues, and strictly limiting debt usage."

In further praising the State’s financial management Mr Coughlin noted: “Policy makers in Europe and America and elsewhere are only now beginning to confront the costs of an aging population, and that against the background of substantial debt and often structural budget deficits.

“Queensland, by contrast, has a legacy of financial discipline, the full funding of its pension obligations and a robust economy.

• Meanwhile the Deputy Premier also announced that QSuper funds under management have recently reached $20 billion.

“This is a significant milestone and underpins our commitment to the long-term financial wellbeing of Queensland Government workers,” Ms Bligh said.

Ms Bligh said that the State’s healthy economic position and continuing prudent management is delivering rewards for all Queenslanders as well as gaining confidence-boosting national and international recognition.

31 October 2006

Media contact: Deputy Premier’s Office 3224 4379