However, unlike the Queensland Government, the NSW Government is planning to continue spending on infrastructure projects with an investment program totalling $59.7 billion over four years.
The government itself described the budget as:
“…[setting] New South Wales apart from governments across the world: it slows expense-growth, accelerates spending on infrastructure, and reduces net debt – an extraordinary trifecta in the light of the challenges we face…”
Need to know
The headline items from the Budget are:
- A deficit of $329 million in 2013-14, with a return to a surplus of $829 million in 2014-15 and a surplus of $1.5 billion by 2016-17.
- Gross State Product (GSP) will rise to 2.75 per cent in 2013-14, compared to the 2.4 per cent in 2011-12.
- Net debt of 3.2 per cent of GSP in 2013-14 is set to rise to 3.5 per cent over the forward estimates.
- The unemployment rate is expected to increase to 5.5 per cent over 2013-14.
The detail
- $27.9 billion of capital works for the transport sector over four years to 2016-17, including the WestConnex Motorway, North West Rail Link, and upgrades for the Pacific Highway and Princess Highway.
- $4 billion in hospital upgrades, redevelopments and expansions over the forward estimates, including the next stage to the redevelopment of Lismore Hospital and the redevelopment of Kempsey Hospital.
- An additional $2 billion for education over the forward estimates, including $430 million each year for schools and TAFE colleges. A total of $14 billion is to be spent on education in 2013-14.
- $585 million to trial the National Disability Insurance Scheme (NDIS) in the Hunter Region.
- The First Home Owner Grant will be extended for a further two years until 1 January 2016.
The Tax
- An increase in the payroll tax threshold from $689,000 to $750,000 to begin on 1 July 2013.
