Queensland Treasurer David Janetzki delivered the state's 2026-27 budget on Tuesday, projecting a return to surplus by the 2029-30 fiscal year. The budget includes an estimated $6.9 billion in coal royalties for 2026-27, a $119.2 billion commitment for infrastructure, and continuing concerns regarding the state's credit rating.

S&P affirmed a negative outlook for Queensland government debt in February, citing large deficits and weak budgetary performance. However, S&P refrained from downgrading the state's credit rating, stating an expectation for Queensland to return to an operating surplus in the 2028 fiscal year. The budget forecasts a $1.9 billion deficit in 2028-29 and a $619 million surplus in 2029-30, the year after the next state election. State borrowings are forecast to exceed $202 billion in 2028-29. Queensland is currently running a $6.2 billion operating deficit.

In the 2025-26 fiscal year, Queensland earned $4.79 billion in coal royalties, and coal exports are forecast to rise by 6% in 2026-27. Government revenue is projected to increase by 5.1% over the forward estimates, driven by increases in government duties, payroll tax, and royalties. Government spending is forecast to rise from $100.8 billion in 2025-26 to $111.6 billion in 2029-30, although expense growth is predicted to drop from 4.9% in 2026-27 to an average of 2.6% over the four years to 2029-30.

The $119.2 billion infrastructure allocation covers new roads, transport projects, and other infrastructure over the next four years. Separate funding for the Borumba pumped hydro scheme and multiple smaller hydroelectric projects promised by the LNP at the last election was not included. Premier David Crisafulli said, "We haven't taken the easy road, haven't found justifications to whack people with new taxes under the cover of global crises." Janetzki stated, "Labor's legacy left us highly likely, or even an air of an inevitability, to getting a rating down grade, but I'm not giving up." He added, "We're not giving up because we're making the budget improvements while delivering what we promised."

Additional measures include an exemption from stamp duty for first home buyers building or purchasing a new home, an extension of the $30,000 First Home Owner Grant, and an increase of the Back to School payment by $50 to $150. Bulk water prices in Southeast Queensland will be frozen for two years, saving residents approximately $130. Free kindergarten will continue for another four years, providing fifteen hours per week for all four-year-olds, and funding for the 50 cent fare scheme will be legislated. The revenue office will pursue existing tax and penalty debt, expecting to recover $612 million and raise about $220 million over the next four years.

Queensland jails are currently 135.5% full, down from 144.5% last year. The Lockyer correctional center, with 1,500 beds, opened in September. The government plans to spend more than twice as much on health infrastructure as on the 2032 Olympics. Crisafulli said Queenslanders would get full visibility on every project and stated, "Right now, we're arm wrestling and driving down contract prices."