Queensland budget dramatically increases spending and staff amid rising debt

In June 2025, Queensland's Treasurer David Janetzki, representing the Liberal National Party, presented his first state budget in an impressive decade, which notably increases government spending, entrenching deficits while growing the public sector. This budget sees the state's total debt projected to exceed $200 billion for the first time. Despite criticism regarding a deterioration in the state’s finances, Janetzki insisted on implementing measures that countered the opposition's allegations of austerity. The document includes continued funding for various cost-of-living relief initiatives introduced by the previous Labor government, illustrating a strategy of maintaining popular policies. Additionally, Janetzki's budget reflects a commitment to enhancing frontline services, with plans to employ 6,073 new public sector workers, primarily in health, education, and policing. This is in stark contrast to the previous administration led by Campbell Newman, which cut 14,000 public sector jobs. The commitment to increase staff reflects acknowledgment of the service delivery issues faced under Labor's governance, especially in the critical areas of health and youth justice. The financial implications of the budget tie into predictions of a decline in key revenue streams for Queensland, including GST returns and coal royalties. Furthermore, the budget will implement ongoing financial discipline to manage employee expenses, which have been projected at a relatively controlled average increase of 3.5% annually over the next four years. Public sector unions may likely challenge these measures, given the current emphasis on limiting wage growth alongside expanding headcounts. Janetzki’s budget underscores the LNP’s strategic focus on distancing itself from Newman’s controversial legacy while attempting to consolidate support for a second term. Despite the rising debt, Janetzki aims to project a balanced approach, indicating that the government has returned stability to Queensland’s finances. The budget’s implications are profound, as both significant increases in hiring and financial projections culminate in a challenging balance of maintaining public services while managing the state's debt. The LNP's adoption of Labor policies indicates a shift in strategy, reflecting political pragmatism to secure public support amid economic pressures. As the government faces criticisms surrounding potential credit rating downgrades, Janetzki's fiscal approach represents an attempt to mitigate fears of austerity, hence aiming for an appeal to a wider electorate amid ongoing scrutiny of the state’s financial trajectory.