A recovering economy and the GST help fuel NSW budget spending initiatives

Buoyed by GST revenue and mining royalties, the NSW government is able to spend while keeping its tax credentials intact.

Housing is a big part of the NSW budget (Image: AAP)

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.

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