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Queensland’s boring budget

June 3, 2014 Comments off

NOTE: This article was writing at the request of The Conversation, where it was first published.

With the release of their plan to sell and lease some assets after the next election, the state government has shifted attention away from their budget. Though in truth, it would have been quite easy to distract people from this budget, because there is nothing new.

This is a boring budget.

We already knew that the ever-elusive budget surplus had disappeared. Two years ago I commented in The Conversation that: “The forecast for a fiscal surplus in 2014/15 is nice, but it is hard to take long-term budget predictions too seriously” and also that “it is easy to predict future austerity and surpluses, but it is harder to actually make it happen”. Time has justified that skepticism. The government’s original estimate for 2014/15 was a $0.7 billion surplus, but they are now expecting a $2.3 billion deficit.

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