Money to upgrade coal-fired power stations and build new transmission lines will be included in a budget that seeks a pathway back to surplus.

Economists say credit rating agencies will be watching closely when the LNP government hands down it’s second annual budget on Tuesday.

Money to upgrade coal-fired power stations and build new transmission lines will be included in a budget that seeks a pathway back to surplus.

Growth in the state’s debt will continue at a reduced level amid a focus on balance-sheet repair, as major infrastructure costs remain unclear.

Liberal-National Party Treasurer David Janetzki concedes Queensland is at risk of a credit downgrade but insists his budget is careful and responsible.

Earnings from mining the fossil fuel set to increase to $6.9bn over financial year, up from $4.8bn, with budget deficit to reach $6.2bn