Queenslanders need to start paying off their debts

That leaves the option of asset sales, which would quite easily raise the billions needed to significantly pay debt down to a more sustainable level. Contrary to the recommendations of the 2013 Commission of Audit headed by former federal treasurer Peter Costello, the previous LNP government did not pursue the outright sale of assets the audit identified: Energex, Ergon, Powerlink and the Queensland Investment Corporation.

Privatisation therefore still has to be on the table.

The great political challenge is to sell the need for privatisation to an electorate that seems to feel it is richer for owning state assets but not poorer for owing state debt. This is something the former LNP government was unable to do. Yet federal governments of both persuasions, and other state governments have previously not found it that hard.

The biggest budgetary risk for the next Queensland government is that interest on its public debt will rise as rates rise globally. That would lead to public debt feeding on itself in the future. Combined with lacklustre economic growth, due to anaemic private investment, and the inevitability of natural disaster, public debt would become unsustainable.

There are no easy fiscal options but a combination of the unpleasant ones listed above, with the emphasis on asset sales, would safeguard against this risk.