The Queensland Government yesterday delivered a tight budget with engineers warning that a lack of infrastructure investment will see a rapid decline in construction activity by 2014/15.
Although the government has restricted spend, there was still a deficit of $7.664 billion forecast for the 2013-14 budget.
Industry association, Consult Australia has predicted a decline of 11 per cent in engineering construction for Queensland following the lack of infrastructure investment announced in the state Budget.
Data from the Association's Economic Forecast report has already shown a sharp fall in construction commencements in Queensland in the year to date.
Consult Australia Queensland state manager, Stacey Rawlings said fiscal discipline has come at the expense of a longer term productivity agenda supporting growth.
"Without sound investment in productivity the built environment industry will continue to contract," she said.
"It is disappointing that the uncertainty created by the Federal Election in September appears to be directly impacting investment in Queensland.
"With not one, but two electoral cycles seeming to drive infrastructure investment, it seems we might have a better chance of a lunar eclipse than getting what we need for the state.
"The short term focus on returning the budget to surplus in lieu of sound infrastructure investment will result in a loss of skills interstate and overseas and will have a direct impact on the viability of many SME's."
The 2013-14 State Budget focuses on growing Queensland's economy, rebuilding after natural disasters and making communities more resilient for the future, Treasurer Tim Nicholls said yesterday.
Nicholls said it was a no-frills, no-nonsense budget, delivering the frontline services Queenslanders expect while also fostering economic growth.
The Budget forecast growth for the State of 3 per cent in 2013-14.
"Revenue forecasts have fallen by $5.3 billion since the Government was elected last year,”he said.
"This Budget includes a write down in general taxation and royalties of $1.9 billion and a decrease of more than $695 million in GST payments over the forward estimates.
"For the 2013-14 year the Government will record a fiscal deficit of $7.7 billion."
Due to the tight climate the government will delay reaching a fiscal surplus in 2014-15.
Nicholls said the Budget forecast a small fiscal deficit of $244 million in 2014-15 and a fiscal surplus of more than $1 billion in 2015-16.
