Queensland’s credit rating could deteriorate further if expenses continue to blow out of control, a credit ratings update from Standard and Poors has confirmed.
Shadow Treasurer Scott Emerson said Labor had already broken its fiscal principles, which was a worrying sign for the future.
“According to S&P downwards ratings pressure could occur if expenses growth outpaces revenue growth,” Mr Emerson said.
“Worryingly, all we’ve seen under Annastacia Palaszczuk and Labor is expenses blow out of control, as the public service wages bill has ballooned by almost $4 billion a year.
“Labor couldn’t even keep its own fiscal principle to link growth in the public service to population growth. In fact, they broke this promise in the very first year they introduced it.
“When Labor came to office expenses growth in 2016-17 was forecast at 3.6 per cent but what they actually delivered was double that at 7.2 per cent – which was more than four times higher than inflation.
“Labor’s future budget forecasts rely on heroic assumptions they can keep a lid on expenses growth, but when looking at their record it’s clear there is no chance of this happening.”
Mr Emerson said Labor’s only budget strategy was one of raids on public servants superannuation and long service leave and using government-owned utilities companies like ATMs.
“Sadly Labor has wasted the temporary spike in coal royalties and debt is heading to more than $81 billion,” he said.
“Worse still, they’ve run out of hollow logs to raid.
“The latest public service statistics are now overdue and it will be interesting to see if there was another surge like last quarter.
“Any increase above what has been budgeted will put the budget further into deficit and risks putting further pressure on Queensland’s credit rating, as highlighted by S&P today.”
