Queensland's Liberal National government faced a tough balancing act after promising cost-of-living relief and no new taxes as it ramps up preparation for the 2032 Games.

Premier David Crisafulli conceded there were no 'sugar hits' in Tuesday's budget which predicted total debt to climb beyond $200 billion over the next four years.

But the LNP government still delivered the 'largest ongoing cost-of-living relief package' in state history with concessions totalling nearly $9.3 billion - about $700 million more than last year - while sticking to its 'no new or increased taxes' mantra.

Typical household electricity prices are forecast to fall seven to 10 per cent in 2026/27 and small business bills by eight to 14 per cent as a $5.2 billion Energy Roadmap rolls out and lower Ergon tariffs are passed through in full. 

The vulnerable household electricity rebate will rise 3.4 per cent to almost $400, helping about 700,000 households.

Families will get an extra $50 in back-to-school payments for primary-aged students.

Overall education spending will rise to $23.1 billion, including $2.3 billion for 22 new schools.

Housing will receive a record $5.7 billion for social and community homes, supporting about 6500 dwellings already under way and a longer-term goal of 53,500 homes by 2044, with a fast-tracked $2 billion Residential Activation Fund to unlock land sooner. 

'The government haven't taken the easy road, haven't found justifications to whack people with new taxes under the cover of global crises ... we're going to continue to drive down tax, not find new ways to tax you,' the premier said.

A deficit of $6.18 billion was projected for 2026/27.  

Total state debt is expected to reach $142.4 billion this year and climb to $216.5 billion by 2029/30 as the Brisbane Olympics build ramps up.

Treasurer David Janetzki said a surplus of $619 million had been projected for 2029/30, marking the first time Queensland would be in the black since 2023/24.

'This surplus is possible because of stable revenue improvements, the careful management of expense growth and a growing Queensland economy,' he said while delivering his second budget.

'Lower debt, improving deficits, with a pathway to surplus and no new or increased taxes - just as we promised.'

The treasurer conceded a credit downgrade was inevitable, placing the blame on the previous Labor government.

Queensland's AA+ credit rating was downgraded for the first time in 15 years when it went from stable to negative in February 2025.

Opposition leader Steven Miles described the LNP's projected surplus as 'very thin', saying there was nothing in the budget to help families.

'Costs are up and there is no relief in sight - certainly not in this budget,' he said.

A record $119.2 billion capital works program featured in the budget, covering massive builds for hospitals, roads and housing along with 2032 Olympic and Paralympic Games venues.

'We are delivering what we said we would, with the hospitals, schools, generational infrastructure, housing and police we promised, all with no new or increased taxes,' Mr Janetzki told parliament.

As part of the $7.1 billion Games Delivery Plan, $765 million next year will go toward the Victoria Park main stadium, athletes' villages and venues across the state.

'We've got record capital expenditure that we need, because of the Games, but also the generational infrastructure that lies around it - roads and rails,' Mr Janetzki told AAP.

The premier stressed Olympic spending sat alongside, rather than above, core infrastructure.

'Delivering a competitive Games is definitely important in terms of infrastructure delivery,' he said.

'But ...we'll be spending more on (the) Bruce Highway alone than what we're spending on all the sporting venues.'

A record $31.486 billion health budget was unveiled along with a fully funded Hospital Rescue Plan.

An expanded cap on non-frontline senior executives is set to save $54 million as part of a $500 million public service savings push.