NSW Budget 2023 explainer: what this year’s budget means for Sydney residents

After years of big-spending budgets packed with cost-of-living sugar hits and billions of dollars in new spending measures, Labor’s first budget since 2010 is way more modest.

Billions of dollars in infrastructure spending has also been redirected to pay or the government’s wage bill.

Labor’s first budget in 13 years won’t win any popularity contests.

If you wanted an early Christmas present from the NSW government - chances are you’re going home empty handed.

That is just how Treasurer Daniel Mookhey wanted it.

After years of big-spending budgets packed with cost-of-living sugar hits and billions of dollars in new spending measures, Mr Mookhey used Labor’s first budget since 2010 to pay down debt and - in his words - store money away for a “rainy day”.

Labor’s first budget since 2010 is the kind of budget that could only deliver immediately after winning government from opposition: there are few sugar hits among the belt tightening.

NSW Treasurer Daniel Mookhey. Picture: NCA Newswire/ Gaye Gerard

Improvements to the state’s bottom line is being bolstered by increases in stamp duty and payroll tax receipts, which will drive revenue up by billions of dollars.

NSW will get $14 billion extra, over the next four years, than forecast in March.

Despite the windfall, this was not a cash splash budget; Mookhey - and his Finance Minister Courtney Houssos - have made a virtue of their restraint.

Spending has been offset by $13 billion in savings, identified by the government’s budget razor gang over dozens of meetings - including four all-day Saturday meetings in recent weeks.

Ministers essentially turned out the state’s pockets, shook out the cushions, and looked down the back of the couch for every cent they could find.

They ended up finding $400 million left over from completed infrastructure projects, which has now been redirected to build almost 4,700 homes.

This is welcome, but is a drop in the ocean when it comes to the number of dwellings NSW needs to meet its housing targets.

Billions of dollars in infrastructure spending has also been redirected to pay or the government’s wage bill - which will grow to almost $50 billion by 2027.

The government has chosen investment in essential workers over building new infrastructure, cutting taxes, or delivering cost of living relief. It has also paid down almost $15 billion in gross debt to save money on interest payments, rather than spend it on projects which could grow the economy.

Before the election, Chris Minns promised restraint. That is what he delivered.

It might not be popular with everyone, but this is a fight Labor is willing to have.