The NSW Government has today released its Half-Yearly Review following the September Budget.<\/p>\n\n\n\n
The review is reporting a $1.7 billion budget deterioration this financial year, followed by modest surpluses over the forward estimates.<\/p>\n\n\n\n
High inflation, high bond yields, a reduction in the national GST pool and the Federal Government\u2019s infrastructure cuts are responsible for the pressure on the budget result.<\/p>\n\n\n\n
The Federal Government\u2019s Mid-Year Economic and Fiscal Outlook delivered yesterday identified $9.8 billion in savings and reprioritisations. $7.4 billion of those savings over the forward estimates are through cuts to state infrastructure funding.<\/p>\n\n\n\n
The federal infrastructure cuts will create an estimated budget deterioration to NSW of $1.6 billion over five years.<\/p>\n\n\n\n
The NSW Government remains clear that it expects every cent taken out of NSW to be returned to NSW. Those conversations continue.<\/p>\n\n\n\n
Interest costs have also risen by $500 million in 2023-24, arising from higher bond yields charged against the record levels of debt the government inherited.<\/p>\n\n\n\n
The state\u2019s insurance liabilities have also grown and have worsened the budget result by $900 million over the four years to 2026-27. It follows additional claims against the iCare administered Treasury Managed Fund as well as lower than expected investment returns.<\/p>\n\n\n\n
High inflation and rising interest rates are impacting household consumption, with the State\u2019s GST receipts forecast at $1.9 billion lower over the four years to 2026-27.<\/p>\n\n\n\n
In the months since the September budget, global ratings agencies Moody\u2019s and Fitch both affirmed NSW’s triple-A credit ratings, while S&P maintained its double-A plus rating \u2013 all endorsing the Minns Government\u2019s responsible budget approach.<\/p>\n\n\n\n
Read the full Half-Yearly Reviewlaunch<\/a><\/p>\n\n\n\n Treasurer Daniel Mookhey said:<\/strong><\/p>\n\n\n\n \u201cI’ve been upfront about how challenging it is to return the state\u2019s budget to surplus. Recent decisions by the Federal Government haven\u2019t helped.<\/p>\n\n\n\n \u201cThe review is another reminder about why it\u2019s so important for the government to carefully manage its finances, just like every NSW family is having to do.<\/p>\n\n\n\n \u201cBy continuing to repair the state\u2019s finances we will be in a better position to help families through this once in a generation cost of living crisis.\u201d<\/p>\n\n\n\n Minister for Finance, Courtney Houssos said:<\/strong><\/p>\n\n\n\n \u201cIn this year’s Budget, the Minns Labor Government began the long process of winding back 12 years of waste and mismanagement under the Liberals and Nationals.<\/p>\n\n\n\n \u201cIt\u2019s clear NSW still faces external challenges with economic headwinds and the withdrawal of significant Commonwealth government funding.<\/p>\n\n\n\n \u201cWe\u2019ve reined in the previous Liberal-National Government\u2019s waste, adjusted the state\u2019s debt trajectory, and instituted fiscal discipline. This has made NSW more resilient to withstand external pressures.<\/p>\n\n\n\n \u201cWe understand the pressures that families and households are facing, and our Government has begun to rebuild the essential public services they rely on.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" The NSW Government has today released its Half-Yearly Review following the September Budget. The review is reporting a $1.7 billion budget deterioration this financial year, followed by modest surpluses over the forward estimates. High inflation, high bond yields, a reduction in the national GST pool and the Federal Government\u2019s infrastructure cuts are responsible for the … Continue reading “Government delivers Half-Yearly Review”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-24546","post","type-post","status-publish","format-standard","hentry","category-nswnews"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/24546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=24546"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/24546\/revisions"}],"predecessor-version":[{"id":24547,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/24546\/revisions\/24547"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=24546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=24546"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=24546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}