A day after announcing plans to slash $1b from the public service, Lawrence Springborg now reckons he'll have the budget back in surplus by 2012.

Thanks to the Global Financial Crisis (GFC) the budget will go more than $3b into deficit next financial year.

Mr Springborg admits that the GFC is a "contributor" to the state's financial woes but "things go in cycles" and "over the budgetry cycle" an LNP Government would have us back in surplus.

He made his declaration standing beside his Treasury spokesman Tim Nicholls, who'd previously said the LNP wouldn't need to go into deficit.

Expect Labor to ramp up their economic attacks as the campaign drags on.

KRudd has signed up for the Bligh bandwagon today (Wed).

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