BOWMAN MP Andrew Laming has called this week's national economic outlook 'sobering', with unemployment tipped to peak at nearly 10 per cent in December.
Treasurer Josh Frydenberg revealed on Thursday that the Commonwealth would run an underlying cash deficit of a staggering $184.5 billion in 2020-21.
Net debt was expected to reach a record $677.1 billion - 35.7 per cent of GDP.
Queensland had an operating deficit of $5.9 billion in 2019-20, which was expected to swell to $8.4 billion for 2020-21.
Mr Laming said Australia had lost 870,000 jobs and around one million people had their hours reduced.
He said unemployment in the Redlands - in line with the rest of the country - was expected to peak in December at just under 10 per cent.
"I ... urge everyone to keep supporting local business, continue filling local vacancies with locals and for bosses to employ every person possible through this period," Mr Laming said.
"The last thing we should do in this period is contract our local spending, because loss of economic confidence remains the key threat in the current outlook."
Queensland Treasurer Cameron Dick said COVID-19 was wreaking havoc on economies across the world.
"The forecasts released today ... show that over the 2019-20 and 2020-21 financial years, GST receipts to Queensland will be cut by up to $2.5 billion compared to our (mid-year) estimates.
"The GST cuts mean that Queensland faces a fall in revenue since MYFER of at least $6.5 billion over 2019-20 and 2020-21.
"As our revenues fall, our expenditure has grown through the $6 billion in initiatives we have implemented over the last six months."
Queensland general government sector gross debt was forecast to be $59.4 billion in 2020-21.
Mr Dick said the best way to raise revenue was to get people back into jobs and get the economy moving again.
"The last thing our economy needs is to be throttled by austerity measures," he said.
"Austerity would mean creating a cycle of generational unemployment, instead of creating catalytic infrastructure."
Across the country, governments are using additional borrowings to support health responses and economic recovery measures.
Mr Laming said Australia's position was favourable compared to many other developed countries.
"Australia's strong position is based on three factors," he said.
"The welfare system was under control going into COVID, demand for our exports hasn't waned and finally, Australians have continued to spend and contribute to the tax system, thanks to 700,000 jobs being saved by Job Keeper."
