Published Tuesday, 03 June, 2008 at 04:35 PM
Treasurer
The Honourable Andrew Fraser
Queensland economic growth leads the nation
The Queensland economy is anticipated to expand by 3¾ per cent in 2007-08, recording a result exceeding national growth for the 12th successive year.
Treasurer Andrew Fraser said economic growth was forecast to strengthen in 2008-09 to 4¼ per cent, compared with an anticipated national growth of 2¾ per cent.
Handing down the Bligh Government’s $36.6 billion State Budget today, Mr Fraser announced a projected surplus for 2008-09 of $809 million, driven by strong coal prices feeding into increased mining royalties.
The underlying surplus will be approximately $272 million in 2007-08 which is higher than the surplus ($213 million) forecast at the time of the Mid-Year Budget Review.
“The State’s capital program is estimated to be $17 billion, an increase of 21 per cent – the largest capital program of all the states on a per capita basis,” Mr Fraser said.
“Queensland will retain its competitive tax status with per capita state tax estimated at $2,342 in 2008-09 compared to an average of $2,616 for the other states and territories.
“To restrict the capital program by not borrowing is an unnecessary impediment to Queensland’s economic and social development.
“This borrowing is undertaken in a fiscally responsible manner and is appropriate given the strength of Queensland’s balance sheet.”
“The net worth of the State is forecast to be $128.563 billion, an increase of $5.5 billion over the 2007-08 estimate and is expected to grow to in excess of $140 billion by 2011-12.
“Queensland’s balance sheet remains one of the strongest in the nation with net debt of negative $5,082 per capita, compared to net debt of $352 per capita in the other states.”
Additionally, Mr Fraser said the state’s year-average unemployment rate is estimated to remain at a 34 year low of 3¾ per cent in 2008-09, well below the national rate for the fifth consecutive year.
As previously announced, there will be an estimated net operating deficit of $995 million in 2007-08 as a result of lower than expected investment returns.
Media Contact Chris Taylor 0419 710 874
Treasurer Andrew Fraser said economic growth was forecast to strengthen in 2008-09 to 4¼ per cent, compared with an anticipated national growth of 2¾ per cent.
Handing down the Bligh Government’s $36.6 billion State Budget today, Mr Fraser announced a projected surplus for 2008-09 of $809 million, driven by strong coal prices feeding into increased mining royalties.
The underlying surplus will be approximately $272 million in 2007-08 which is higher than the surplus ($213 million) forecast at the time of the Mid-Year Budget Review.
“The State’s capital program is estimated to be $17 billion, an increase of 21 per cent – the largest capital program of all the states on a per capita basis,” Mr Fraser said.
“Queensland will retain its competitive tax status with per capita state tax estimated at $2,342 in 2008-09 compared to an average of $2,616 for the other states and territories.
“To restrict the capital program by not borrowing is an unnecessary impediment to Queensland’s economic and social development.
“This borrowing is undertaken in a fiscally responsible manner and is appropriate given the strength of Queensland’s balance sheet.”
“The net worth of the State is forecast to be $128.563 billion, an increase of $5.5 billion over the 2007-08 estimate and is expected to grow to in excess of $140 billion by 2011-12.
“Queensland’s balance sheet remains one of the strongest in the nation with net debt of negative $5,082 per capita, compared to net debt of $352 per capita in the other states.”
Additionally, Mr Fraser said the state’s year-average unemployment rate is estimated to remain at a 34 year low of 3¾ per cent in 2008-09, well below the national rate for the fifth consecutive year.
As previously announced, there will be an estimated net operating deficit of $995 million in 2007-08 as a result of lower than expected investment returns.
Media Contact Chris Taylor 0419 710 874