With even more moolah being proposed to be spent by both major political parties in the run-up to the October State election, most Queenslanders would be staggered to know the current 23/24 Queensland Budget contains $8.2 billion in concessions.

Voters are largely unaware , and/or don’t care how many hand-outs there are in the state’s outlays, or the fact that it accounts for one tenth of the total state budget this financial year .

Yes , that’s $8000-million and a bit. Those concessions rose by a whopping 21.2% in 2023-24 off the back of a major cost-of- living package.

What have they achieved? Has the financial pain been eased? Is it sustainable? And what, if any, gratitude has the government received?

Finally, and importantly, how many more large increases can future state governments bear?

Taking the scalpel to those concessions that come in the form of subsidies, rebates and discounts we find that energy rebates are worth $1.7b ,Transport Main Roads Rebates $3.6 b (the concessional cost of the SEQ rail and bus transport is $1.7b), $700m in Housing , $500m for Small Business and Training and $350 for Health (principally the State’s Dental Health Scheme ), plus a poultice of smaller concessions.

Within those big numbers are very large concessions to pensioners and rural and remote Queenslanders – the state’s postage stamp pricing of energy costs the budget $550m.

The biggest concession to individuals is in the cost- of- living and electricity rebates that see $1072 being paid to eligible households.

Concessions abound.

The cost-of living crisis is a devil of a political challenge. Politicians have to show empathy and understanding of the pressures householders are under, yet display tough love and foresight in recognising that our current dilemma is cyclical – it will correct over the next 18 months as interest rates and inflation fall, taxes are cut and price gouging eases.

But the concessions are built into all future budgets, strangling future budgetary choices for government . History has taught us the current resources boom won’t last forever, and once the rivers of gold dry up, where does that leave future state budgets.

Cash hand-outs risk igniting demand-pull inflation at the very time the inflation cycle is moderating. Foregoing revenue is the better option, especially at a time when the Queensland and Federal Budget are in surpluses.

As a young economist I used to think the then Finance Minister, the late Peter Walsh, was curmudgeonly, miserly and some .

Walsh was a Labor Senator, wheat farmer and accountant from WA who eschewed middle class welfare, and by the jeepers he was right. Spreading the love is a very dangerous game to play.

Late last year the Reserve Bank of Australia held a conference on inflation and inequality. The primary findings were that  welfare concessions have to be targeted and not broad brush so as to avoid feeding the inflation monster .That and productivity growth was the enduring remedy to cost-of-living pressures.

In my words, middle class welfare is fool’s gold, a sugar hit, and to be avoided at all costs.

So cast a very beady eye over politicians of all political hue throwing, or offering, to throw large amounts of money about to ease hip pocket pain  as the state election draws nearer.

You the punter are already footing the bill for $8.1 in concessions.

Say no to vote buying.