Strongest forecast growth of all States Economic growth NSW Vic. - PowerPoint PPT Presentation

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Strongest forecast growth of all States Economic growth NSW Vic. Qld WA SA Tas. 5 4 Annual % change 3 2 1 0 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Economic parameters 2015-16 2016-17 2017-18 Outcome Budget MYFER Budget MYFER Gross state product 2 3.2 4 4 3½ 3½ Employment 1.6 1½ ¾ 1¾ 1¾ Unemployment rate 6.2 6¼ 6¼ 6 6 Inflation 1.6 2 1¾ 2½ 2¼ Wage Price Index 1.9 2¼ 2¼ 2¾ 2¾ Population 3 1¼ 1½ 1½ 1½ 1½ Notes: 1. Annual % change, except for unemployment rate. 2. Based on Queensland Treasury Queensland State Accounts. Using different methodologies the ABS estimates 2.0% growth in 2015-16. 3. Population growth for 2015-16 is the annual growth rate in the three quarters to March quarter 2016, as June quarter 2016 data were not available at the time of printing. Sources: ABS 3101.0, 6202.0, 6345.0, 6401.0 and Queensland Treasury. 3

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Operating surplus driven higher by short-term royalty boost Net operating balance ($ billion) 3 2 1 0 -1 -2 -3 -4 -5 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 4

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Short-term Royalty Boost Hard Coking Coal, contract price 225 2016-17 Budget 2016-17 MYFER 200 175 US$ per tonne 150 125 100 75 50 5

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Key revenue changes since Budget 1600 Taxes Royalties GST 1400 1200 1000 800 $ mllion 600 400 200 0 -200 -400 -600 2016-17 2017-18 2018-19 2019-20 6

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review General Government Debt lower GGS Debt $ billion 2014-15 Budget 2015-16 Budget 2016-17 Budget 2016-17 MYFER 50 45 40 35 30 25 20 2015-16 2016-17 2017-18 2018-19 2019-20 7

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Ongoing reductions in debt General government debt to revenue 2014 – 15 Budget 2015 – 16 Budget 2016 – 17 Budget 2016 – 17 MYFER 105 100 95 90 Debt to Revenue ratio 85 down 25% since 2012-13 % 80 75 70 65 60 2012 – 13 2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2018 – 19 2019-20 8

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Non-financial Public Sector debt lower NFPS Debt $ billion 2014-15 Budget 2015-16 Budget 2016-17 Budget 2016-17 MYFER 84 82 80 78 76 74 72 70 2015-16 2016-17 2017-18 2018-19 2019-20 9

Queensland Budget 2016-17 Mid Year Fiscal and Economic Review Regional Jobs and Productivity Boosting Infrastructure $ 200 million Jobs and Regional Growth Package Includes $170 million Jobs and Regional Growth Fund Includes $20 million Made in Queensland manufacturing $10.7 billion c apital program More than $440 million Accelerated Works Program $200 million Regional Works program 10