Queensland Treasurer David Janetzki has handed down the state's 2026–27 budget, outlining a plan that combines cost-of-living assistance, major infrastructure investment and public service reforms while forecasting a return to surplus later in the decade.
The budget forecasts a significant deficit in the near term but projects a return to a surplus of about $619 million by 2029–30. Despite that improvement, state debt is expected to continue rising, with gross debt forecast to exceed $216 billion by the end of the forward estimates.
A major focus of the budget is cost-of-living relief. Measures include making 50-cent public transport fares permanent, freezing bulk water prices in south-east Queensland, increasing assistance for school expenses through the Back to School Boost program, and maintaining energy bill support for eligible households.
The government has also committed record spending on health, housing, transport and community infrastructure. Health funding is expected to exceed $31 billion, while billions more will be invested in roads, hospitals, schools and housing projects across the state.
A key challenge highlighted in the budget is the growing cost of the public service. The government has flagged efforts to slow expenditure growth through procurement reforms, restrictions on senior executive positions and a reduction in reliance on external contractors. Ministers argue these measures will improve efficiency while protecting frontline services such as healthcare, policing and education.
Queensland's financial position has been helped by coal royalties and stronger-than-expected revenue, but Treasury acknowledges risks remain. Credit rating agency concerns persist, with Queensland continuing to face the possibility of a ratings downgrade if debt levels and expenditure growth are not contained.
The budget also includes substantial infrastructure spending linked to population growth and preparations for the 2032 Summer Olympics. Government leaders argue these investments are necessary to support economic growth and improve long-term productivity.
Political debate has already emerged over the budget. The government says it is delivering responsible financial management while helping households deal with ongoing cost pressures. Critics, however, argue rising debt remains a concern and question whether the projected return to surplus can be achieved.
