Budget to rescue struggling states
CENTRAL Queensland residents and businesses shouldn't expect any big favours from today's Federal Budget with most of the money expected to go south, according to local finance experts.
CQUniversity economics Professor John Rolfe said Central Queenslanders shouldn't look to the new budget for economic relief.
Prof Rolfe said most towns in the region, including Rockhampton, would most likely miss out on any new government spending.
"I doubt that there will be any major give-aways in the Budget relevant to Central Queensland," he said.
Prof Rolfe said he expected most of the federal spending to be targeted at the southern states to support their weaker economic situation.
Managing director of Capricorn Investment Partners LTD, David French, agreed.
He said Central Queenslanders would be largely ignored in the new Budget and expected the Government to focus on reining back spending across most sectors - a move which would hurt those in industries dependent on retail sales.
"It's going to hurt business, especially those not exposed to mining. It's going to put a lot more pressure on retailers," he said.
Prof Rolfe said the Budget was unlikely to affect the Central Queensland economy as much as resource-based taxes to be introduced mid-year.
"I don't expect any changes in the Budget to have the same impacts as the carbon tax and the minerals rent resource tax due to begin in July," he said.
Prof Rolfe said many of the current economic problems facing Australia stemmed from weak spending discipline from both Labor and Liberal governments.
"The structural issues, which emerged in the last term of the Howard Government and continued with the Rudd/Gillard governments, have been disguised to now by the relatively buoyant economy," he said.