Average input costs for Queensland Government activities appear to have declined by up to 5 per cent since mid-2012, based on State Accounts data from Queensland Treasury, assuming State Government activity mostly drives the State and local general government consumption implicit price deflator (i.e. price index) in the chart below. This average cost reduction would largely be associated with labour savings through leaner, less top-heavy bureaucracies. It confirms the Government’s remarkable performance in limiting expenses growth reported in the Mid-Year Fiscal and Economic Review (see my post from last week).
ABS data also show a drop in average input costs for State and local governments in Queensland (see chart below).