The Queensland Government has announced billions of dollars in asset sales, a new infrastructure fund, and cuts to seniors' concessions, as part of its 2014-15 budget.

The budget shows a $2.27 billion deficit and state debt rising to almost $80 billion.

Treasurer Tim Nicholls says it is a cautious budget that will stabilise the state's debt.

"We know the decisions we made are not going to be popular but Queenslanders can be assured that we do have a plan," Mr Nicholls said.

"We know what we're doing and there is funding assured to deliver that plan and that's the plan that's going to deliver a brighter future for Queensland."

The State Government has confirmed plans to privatise $33.6 billion worth of assets, with $25 billion of that to be used to pay down debt.

The Government has stressed it will not proceed with asset sales until it goes to the state election in March.

Qld budget at a glance: $33.6 billion worth of assets will be privatised

$33.6 billion worth of assets will be privatised The Government will issue long-term leases on the Townsville and Gladstone Ports

The Government will issue long-term leases on the Townsville and Gladstone Ports Power generating companies Stanwell and CS Energy will be sold

Power generating companies Stanwell and CS Energy will be sold Private investors will be sought to fund electricity network upgrades, in return for a share of revenue

Private investors will be sought to fund electricity network upgrades, in return for a share of revenue The budget deficit will rise $2.27 billion next financial year, almost four times the mid year economic forecast

The budget deficit will rise $2.27 billion next financial year, almost four times the mid year economic forecast Government debt is expected to climb $79,956 billion over the next financial year

Government debt is expected to climb $79,956 billion over the next financial year Unemployment is predicted to remain steady at 6 per cent in 2014-15

Unemployment is predicted to remain steady at 6 per cent in 2014-15 A range of concessions for seniors and pensioners will be cut, but it is unclear by how much

An investment fund of $8.6 billion will be formed for projects such as new schools, a natural disasters future fund, road and rail infrastructure, including Brisbane's new bus and train (BAT) tunnel.

The State Government will issue long-term leases on Gladstone Port, Townsville Port and the Mount Isa rail line.

It will also sell power generating companies Stanwell and CS Energy along with water distribution company SunWater Industrial Pipelines.

Private investors will also be sought to fund electricity distribution and transmission businesses Powerlink, Energex and Ergon, in return for a share of revenue.

Mr Nicholls says the alternatives were to double state taxes or cut 30,000 public service jobs and reduce services.

"We are very excited by this budget, we are delivering on our promises, we are continuing to fund services," he said.

"There are no new taxes, no increases in taxes and we are providing a pathway to the future by outlining our strong plan."

Drop in revenue to blame for budget blowout, Nicholls says

The state's budget deficit will rise $2.27 billion in the next financial year, almost four times the mid-year economic forecast.

Mr Nicholls has blamed a drop in royalties and tax revenue for the deficit blowout.

"Projections for revenue returns have come down, predominantly on the back of reductions in the forecast price for coal," he said.

"Whilst coal volumes will exceed for the first time 200 million tonnes in 2013-14, the price has come down and that will have an impact of course on the revenue.

"Every one cent difference in the Australian US exchange rate makes a $30 million difference to the revenues we receive."

The State Government is predicting it will reach a surplus of $862 million in 2015-16.

Journalists in the Queensland budget lock-up at Parliament House this morning.

Government debt is expected to climb to $79.956 billion over the next financial year and rise to $82.07 billion in 2017-18.

The previous Labor government had predicted debt would reach $85 billion in the next financial year.

Economic growth is expected to remain steady at 3 per cent over the next financial year and rise to 6 per cent in 2015-16.

Unemployment is predicted to remain steady at 6 per cent in 2014-15 and drop to 5.5 per cent in 2017-18.

The Government has been aiming to reach a target of 4 per cent unemployment by 2018, which was the LNP's election promise in 2012.

Seniors slugged with concession cuts

A range of concessions for seniors and pensioners will be cut, but it is unclear by how much.

The State Government says the reductions are due to the Federal Government's decision to terminate the National Partnership Agreement on Certain Concessions for Pensioner and Seniors Card Holders.

The Government says the termination will cost Queensland $54.2 million in 2014-15 and represents 15 per cent of the total funding for pensioner and seniors concessions.

That reduction in federal funding will be passed on to pensioners and Seniors Card holders, but its impact is still being determined.

The State Government expects it will decide the extent of the cuts to concessions by October 1.

It is unlikely to make a 15 per cent reduction across the board but concessions to be affected include:

Electricity Rebate Scheme

Electricity Rebate Scheme Pensioner Rate Subsidy Scheme

Pensioner Rate Subsidy Scheme South-East Queensland (SEQ) Pensioner Water Subsidy Scheme

South-East Queensland (SEQ) Pensioner Water Subsidy Scheme Reticulated Natural Gas Rebate Scheme

Reticulated Natural Gas Rebate Scheme Vehicle Registration concessions

Vehicle Registration concessions TransLink Transport Concessions (South-East Queensland)

TransLink Transport Concessions (South-East Queensland) Rail Concession Scheme

Mr Nicholls says the State Government has not finalised all the concession numbers yet.

"We're targeting October 1 for those changes to be flowing through to those concessions in terms of particularly rates, electricity and gas and water," he said.

"The concessions will still be quite substantial, they just won't be as high as they would otherwise have been, had that $50 million not been taken out."

Sorry, this video has expired Qld budget calls for asset sales to pay down debt ( State political reporter Chris O'Brien )

Health, education funding increase

The State Government will increase funding to health by 6 per cent to $13.6 billion, including money for the new Lady Cilento Children's Hospital in Brisbane and the Sunshine Coast University Hospital.

There will also be 155 new or replacement ambulances and an extra 100 ambulance officers.

Education funding will rise 7 per cent to $11.8 billion.

An extra 761 extra teachers and teacher aides will be employed and $94 million will be spent on the transition of Year seven into high school.

Police and correction services boost

There will be 267 extra police officers employed, as well as $37.9 million for new police vehicles and $22 million for new equipment, along with $44.5 million for the Safe Night Out Strategy.

The State Government will spend $61 million recommissioning, refurbishing and expanding correctional centres to deliver more than 650 new beds.

The Borallon Correctional Centre at Fernvale, west of Brisbane, will be recommissioned with 492 beds.

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There will be 72 new beds at the Harold Gregg Unit at Townsville Correctional Centre in north Queensland.

The Lotus Glenn Correctional Centre, south of Mareeba, in far north Queensland will be expanded by 72 beds along with the Numimbah Correctional Centre on the Gold Coast hinterland, which will get 30 extra beds.

The Southern Queensland Correctional Centre will also be converted into a women's prison.

Transport and roads plan

The State Government will spend $5.4 billion on roads and transport, with $768 million of that to be spent on Bruce Highway upgrades and $321 million going towards the Toowoomba second range crossing.

There will be $130 million spent on natural disaster repairs and 75 new six-car passenger trains.

It is the last Queensland budget before the state election, which is due in March next year.