Queensland’s budget aimed at saving lives and creating jobs

The Queensland Government recently presented its budget which according to Treasurer Cameron Dick will create more jobs in the state leading to faster economic recovery, as the state goes under another three-day snap lockdown. The budget has allocated $3.34bn under Queensland Jobs Fund focused on investment attraction and industry development to attract the investment needed to drive on-going growth, and provide wider economic and employment benefits; $52.2bn under the infrastructure program over the next four years creating over 46,500 direct jobs in 2021- 22; $22.2bn on health during 2021-22 for creating a worldclass health system, which is critical for effectively managing the pandemic; $18.3bn under education and training during 2021-22, including $460mn toward targeted investments in flagship skills and training and employment programs Skilling Queenslanders for Work and a revitalised Back to Work program; $14.2bn on economic support initiatives, $6.1bn in concessions and lowering cost of living and $1.9bn on social housing and homelessness investment over the next four years.

Under the 2021-2022 budget targeted measures have been announced to support small businesses and regional economies The Queensland Government says that the Economic Recovery Plan will continue to support businesses, workers, families and communities across the state, and the government has successfully handled the COVID-19 pandemic outbreak in the state, putting the $360bn economy on the path to a robust recovery. Over the 10 years, by 2024-25 the government will have supported over $110bn in infrastructure works, as per the Plan.

The government appears to be very buoyant about the economic rebound, lowering debt and increasing jobs for Queenslanders. As per the budget figures the net debt in 2021-22 is expected to be touching $9.69bn, which is below the 2020-21 forecast, which has resulted from higher revenue, lower expenses [including the savings identified in the Savings and Debt Plan, and a material increase in the value of investments held in the newly established Queensland Future Fund (Debt Retirement Fund estimated to be valued around $7.7bn by the end of 2020-21)].

The budget figures show employment recovery of all the jobs lost during the pandemic, and the same is now forecast to grow by 2¼ per cent in 2020–21 and 3 per cent in 2021–22. The unemployment rate is also low at an estimated 5¾% by June quarter 2022 and reaching 5% by June quarter 2025. The budget also demonstrates that employment in Queensland has rebounded to be 54,900 persons higher in April 2021 than its pre-pandemic level in March 2020, and 253,200 persons higher since the depths of the pandemic in May 2020. The treasurer has said that Queensland has recorded the strongest employment growth of any jurisdiction since March 2020.

According to the government figures the economic forecast and recovery are promising and impressive, but there remains the large unknown in terms of what scale of impact would the pandemic have vertically and horizontally, on the economy under the second wave, as Queensland goes into a three-day lockdown again. The government’s fundamental strategy comprising a hard response to the pandemic based on shutting borders and enforcing lockdowns although intensely debated seems to have been paying the dividends. The cyclical process of safeguarding lives leading to economic and business activities, which in turn creates more jobs and revenue, helps the government address its primary concern — safeguarding lives.