The update also highlights “better-than-expected” growth in state revenues – including mining royalties,GST,land tax,payroll tax and motor vehicle tax – which are now forecast to increase by $11.1 billion over the four years to 2025-26.
The state’s infrastructure program has also grown to $116.6 billion over the four years to 2025-26,an increase of $3.9 billion relative to the 2022-23 budget.
New and existing transport infrastructure,including Sydney Metro West,Sydney Metro Western Sydney Airport,Western Harbour Tunnel Upgrade,and transition to zero emission buses,has driven the increase.
Responding to the budget update on Tuesday,Labor’s treasury spokesman Daniel Mookhey said NSW had no chance of returning to surplus and accused the government of relying on “fictional taxes” like the infrastructure contribution reform,which parliament has not legislated.
“This budget update is the last will and testament of a 12-year-old government trying to desperately get back into power by punching the state further into debt,” he said.
Mookhey said the update also made no allocation for raising the Warragamba Dam wall,which the premier has committed to fund,nor for a bailout of the state’s transport asset holding entity.
“It is dubious at best. And it does raise concerns about the state of the books,should there be a change of government,” he said.
Loading
“Today’s budget reveals the true cost of Mr Perrottet’s government’s decision to offshore the construction of rail infrastructure. Buried in the fine print is a $3 billion bailout for bungled offshore transport projects.”
Mookhey said it was unfair of the government to link its budget blowout to critical spending on flood support.
“This deterioration in the budget has more to do with blowouts as well as reckless spending being promised by a government that’s desperate to hold on to power.”
The budget update is traditionally released in late December but this year was delayed to February.
Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley.Subscribers can sign up to our weekly Inside Politics newsletter here.