Queensland’s debt levels will blow out to more than $100 billion by mid next year — $18 billion more than what was predicted before the coronavirus pandemic hit.

The State Government’s fiscal economic update for the 2020-21 financial year has revealed the state coffers have been hit by a combination of increased borrowings and falling revenue, pushing the predicted debt level to nearly $102 billion.

It was forecast to be about $84 billion this financial year, before the health and economic crisis hit.

State revenue is expected to fall by an estimated $6.8 billion over the 2019/20 and current financial years.

The state’s bottom line will also lose its slim predicted surplus of $151 million in the 2019-20 financial year, dropping to $5.9 billion in the red.

Queensland Treasurer Cameron Dick said it was the Government’s responsibility to increase borrowings, to help the state weather the economic storm of COVID-19.

“When the private sector falls down, the Government must stand up,” he said.

“It’s appropriate we do so to support the economy and Queensland jobs.

“The outlook is undeniably difficult and challenging.”

The total debt includes Government-owned corporations.

The Treasurer also conceded the debt level could worsen, with changing economic conditions.

$11 billion COVID stimulus

The fiscal plan is the only major economic update the Government will release before the state election on October 31.

Because of the economic volatility, the Government said it was unable to provide a four-year financial outlook.

But Mr Dick promised Labor would reveal a full budget in November, if re-elected.

He also announced another $4 billion in borrowings to be spent on the coronavirus economic recovery measures, including $500 million to build more renewable energy projects and $500 million for a small business fund.

It brings the Government’s total COVID-economic stimulus response to $11 billion.

The Treasurer said historically low interest rate levels and a debt reduction plan to pay down $3 billion over the next four years would keep the Government’s borrowings to a sustainable level.

Mr Dick denied the extra money would be used as an election slush fund.

He also said the Government couldn’t rule out increasing taxes in the future, but stressed he had no intention of increasing household costs.

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