The Beattie government has ignored business calls to use large cash surpluses projected for this year and next to fund cuts in states taxes, especially payroll and stamp duties. Unveiling forecasts for cash surpluses of $2.37 billion this financial year and $1.059 billion in 2004/05, fuelled by a strong rebound in the performance on the financial markets, Treasurer Terry Mackenroth called today's Budget a "significant package of tax relief". However, the only direct tax benefits for business are in the previously announced abolition of the bank accounts debit (BAD) tax from July 1, 2005. The states agreed earlier this year to abolish the tax from that date. Despite contributing significantly to growth in state tax revenues - including sharp rises in both payroll tax collections (4% this year, 6.3% next year) and stamp duties (50% this year, before declining 21.4% next year), he maintains local businesses already enjoy the lowest payroll tax rate in the country at 4.75%. Instead, business will benefit from a large increase in spending on services and infrastructure - as well as a continuation of strong growth (4% in 2003/04, rising to 4.25% in 2004/05). The Budget contains a $6 billion capital works spending program, which includes $234 million of the $1.4 billion Smart State Building Fund announced during the election, $1.9 billion for transport and main roads projects, $1.66 billion for energy projects and $452 million on education and training programs. "Overall it is a $957.6 million or 19% increase on expenditure this financial year and is expected to have a significant effect on employment, supporting 49,070 full-time jobs directly or indirectly," Mackenroth says. "[The surplus] will allow us to make a major boost to services and undertake the largest capital program on infrastructure in Queensland's history."