IT'S the great grab for votes and the Bligh Government has unashamedly pinched some of the plan from their opponents.

Premier Anna Bligh and Treasurer Andrew Fraser on Tuesday handed down their fourth State Budget, predicting the economic sunshine to return to Queensland.

"What this Budget tells you is that the most compelling story of economic sunshine for the next few years in Australia is Queensland," Ms Bligh said.

But while the state remains mired in debt and deficits, the Government found ways to offer handouts ahead of the looming election. The abolition of the ambulance levy and a $10,000 grant for buyers of new homes will cost the state's coffers $840 million.

The initiatives will be paid for by increases to stamp duty for principal places of residence, which will cost $6775 extra on the average home for people who have previously bought property.

First-home buyers will remain exempt on purchases up to $500,000.

Tackling living costs, aiding poorer-performing sectors and reclaiming Queensland's economic status have been key themes promoted by the Opposition.

However, Liberal Nationals leader Campbell Newman said the Budget would not compel him to detail all of his own agenda.

"We have an economic plan that we are finalising and we will release that prior to the election," he said.

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STATE BUDGET 2011 AT A GLANCE

$113 ambulance levy scrapped

$10,000 grants for new homes

Higher stamp duty bills for existing owners

Increases in pensioner rebates

Higher economic growth and investment

Comprehensive news and analysis of the Budget in Wednesday's print edition of The Courier- Mail

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Household electricity bills will be cut by $113 a year with the abolition of the ambulance levy.

People who own multiple properties will save more than $113 as the controversial levy is attached to every electricity bills.



Ms Bligh said ambulance services would remain free for all Queenslanders.



"The ambulance will always be there for you but now the bill won't be,'' Ms Bligh said.



"This is a direct savings measure for families doing it tough.''



Introduced by the Beattie Government in 2004, the levy will cost $700 million over four years to scrap.

The other key initiative in the budget was a $10,000 grant for all Queenslanders constructing or buying a new home up to the value of $600,000.



Described as a "shot in the arm'' for the ailing construction industry, the $10,000 grant will be available for just six months from August 1.



However, the initiative will be funded by scrapping the long-running principal place of residence discount on stamp duty.



While the grant will only be offered briefly, the increase in stamp duty will be ongoing.



The stamp duty change will cost home buyers up to $7175 on the purchase of their property.



However, first-home buyers will still not have to pay stamp duty on properties worth less than $500,000.



And they will continue to get access to the $7000 first-home owner grant for new and existing properties.



Treasurer Andrew Fraser said the stamp duty change to principle places of residence recognised that people already in the market had benefited from rising prices.



"No other state in Australia provides this level of discount and the Government has decided that it should no longer apply in Queensland.'' he said.



Treasury papers estimate the stamp duty changes will reap $161 million for the Government in 2011-12, rising to $272 million in 2014-15.

The main points of today's Queensland state budget:

► $43 billion in revenue

► $47.06 billion in spending

► Borrowing of $33.18 billion, rising to $48.16 billion in 2014/15

► Net operating deficit of $4.08 billion for 2011/12

► Return to budget surplus remains on track for 2015/16

► Unemployment forecast to drop from 5.5 per cent to 5 per cent and 4.75 per cent in 2012/13

► Economic growth of 5 per cent, moving to 5.25 per cent in 2012/13

► $14.9 billion capital works spend

► Business investment predicted to rise by 27.75 per cent, partly driven by liquefied natural gas (LNG) projects

► $11 billion for health

► $10.3 billion for education and training

► 85 new kindergarten services and three new schools

► 300 extra teachers and teacher aides

► 150 extra police

► 50 new ambulance officers

► 140 new or replacement ambulance vehicles and 49 new or replacement fire vehicles

► Abolition of $113 ambulance levy on power bills

► $10,000 grant for new homes less than $600,000 purchased between August and January

► $1.4 billion in concessions and subsidies, including increases to electricity, council rates and southeast Queensland water rebates for pensioners

Originally published as Bligh's big steal a grab for votes