Buoyed by GST revenue and mining royalties, the NSW government is able to spend while keeping its tax credentials intact.
Like the Commonwealth budget, the NSW 2022-23 budget reveals a strong increase in government revenue. And like the Commonwealth budget, part of that sum is earmarked for election-year spending to address cost-of-living issues. But unlike the Commonwealth Budget, it also addresses fundamental fiscal challenges and begins much-needed reform.
NSW Treasurer Matt Kean’s budget boasts a gigantic $25.7 billion increase in projected revenue from forecast estimates – for which the GST allocation change provides 11 billion dollars and mining royalties $4 billion.
Rising revenues also brought the 2021-22 budget outcome well ahead of expectations, but flooding in northern New South Wales alone pushed up budget year spending by more than 3 .5 billion, combined with increased cost of living measures to explode next year. deficit at $11 billion.