Queensland’s Budget looks better than expected thanks to the state’s resources sector.

State Treasurer Jackie Trad has announced a surplus of $1.5 billion as she handed down her budget this afternoon.

The boost to the bottom line is about $1 billion higher than was forecast in December and is mostly thanks to higher commodity prices, including coal.

Despite the boost to revenue, Ms Trad has indicated the government will still be borrowing more money, with state debt expected to hit $83 billion in four years.

The Treasurer is defending the extra borrowing, saying the funds will be funneled into $45 billion worth of infrastructure projects including the widening of the M1 and the Cross River Rail project.

Health will also see an injection, with the government pumping $40 billion into the sector.

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