Queensland books another surplus, growth set to continue: Fraser

31 October 2007

Queensland books another surplus, growth set to continue: Fraser

Queensland has confirmed its status as having the nation’s strongest balance sheet and recorded a final Budget surplus of $1.86 billion for 2006/07.

Treasurer Andrew Fraser reported the final surplus today, tabling in the Parliament the 2006-07 Report on State Finances which also shows the Bligh Government was able to fund its general government capital works building program without new borrowings.

“This attests to the Government’s strong economic and financial management credentials and shows what can be achieved with a decade of solid economic management and fiscal responsibility,” Mr Fraser said.

“The cash surplus was $2.304 billion was recorded for 2006-07, an increase of $582 million over the estimated actual.

“The final operating surplus is $537 million lower than the forecast at the time of the 2007/08 Budget and this decrease reflects a technical adjustment made to tax equivalent payment paid on the gain on the sale of the retail energy and Allgas businesses.”

Mr Fraser said the report also shows:

• Expenses were largely in line with that forecast at the time of the 07/08 Budget
• Taxation revenues were 1.3% higher than expected due to the ongoing strength of the economy, which recorded 6.8% growth for 2006/2007
• Queensland’s taxes remain very competitive with taxation as a proportion of the economy at 4.06%, compared to the rate in the rest of Australia of 4.70%
• Investment returns were roughly equivalent to the 14% forecast at the time of the 2007-08 Budget

“Capital expenditure in the General Government sector totalled $4.418 billion, exceeding forecasts by $281 million.

“It’s further testament to our economic and fiscal strength that we were able to fund this program without acquiring debt in 2006/07.”

Mr Fraser said Queensland’s balance sheet also continues to grow with General Government net worth increasing to $117.831 billion, $3.365 billion higher than the forecast.

“There has also been a further strengthening of the General Government sector’s already strong net debt position, from an estimated negative $26.4 billion to a negative $26.7 billion.

“Our end-of-year results are again the envy of the rest of the nation and prove Queensland’s economic strength and strong fiscal management.”

Media Contact: Chris Taylor 3224 5982