Queensland's budget is $1.6 billion further in the black with coal royalties adding to the government's largest budget surplus.
Treasurer Cameron Dick told state parliament the $12.3 billion surplus announced earlier this year had grown to $13.9 billion based on the Report on State Finances.
"This report is the written proof of the strength of our state's economy and our budget," he said.
"Those progressive coal royalties are providing Queenslanders with fair returns for the coal that they own, and ensuring that when coal companies make record profits that the people of Queensland get a record benefit."
The treasurer said net debt shrunk from $11 billion to $2.6 billion as of June 30, a 76 per cent reduction.
He said it was the sharpest reduction in net debt since accrual accounting was implemented in the 1990s.
Projections from the treasurer's department indicate a budget deficit this financial year with an update on the government's revenue and financial position due in December.
Mr Dick also flagged further cost-of-living relief as part of the government's mid-year review.
"We will always look to do more for Queensland families and we will roll that out in the mid-year review, and then in our budget next year when we have the capacity and capability to do that," he said.
