This budget is bad for jobs and bad for growth.
There’s nothing in this budget to build confidence in the Queensland economy – just tricks and raids on long service leave payments and superannuation.
Even with Labor spending more on bureaucracies. The budget predicts lower employment growth and higher unemployment then the LNP’s last budget. Labor’s $1.6 billion Jobs Now, Jobs for the Future, has failed already.
The budget shows that debt will continue to rise every year despite Labor’s tricks and broken promises.
Total revenue will reach $60 billion for the first time in Qld’s history, while expenses continue to increase above inflation.
How do you know this budget is bad for Queensland – the budget papers say so! Labor’s own budget papers show that Queensland’s Net Financial Worth will worsen in 2015-16 by $513 million and remain above the level projected by the LNP in the 2014-15 MYFER.
Labor’s budget papers state: “The Net Financial Worth measure is an indicator of financial strength. The net financial worth measure is broader than the alternative measure – net debt … The Net Financial Worth of the General Government sector for 2015-16 is estimated at a negative $13.357 billion – the LNP’s 2014-15 MYFER had net financial worth negative $12,844 billion difference of $513 million.
Dividends paid by Government Owned Corporations will decrease as Labor strips cash out of the businesses – this will put upward pressure on prices paid by consumers.
The budget is not in surplus but instead it is in deficit to the tune of $1.1 billion.
Labor’s cash grab on long service leave and superannuation will only decrease budget flexibility and may lead to future problems with the defined benefits fund.