NSW Budget 2021: Dominic Perrottet aims to get state back in black

Dominic Perrottet has been living every treasurer’s dream splashing cash for the last year, except for that not-insignificant problem of the economic crisis he found himself in.

Dominic Perrottet has been on a cash splash spendathon for a year now.

It’s every Treasurer’s dream, except for that not-insignificant problem of the economic crisis he found himself in.

Perrottet told me in a pre-budget interview the early days of the pandemic were among the hardest, when the state of play seemed to be changing at a rapid pace.

He felt like his first stimulus package was obsolete within 24 hours and he immediately needed to announce a second. He was right.

But here we are, more than a year down the track still stimulating, still spending, still feeding the economy the sugar.

NSW Treasurer, Dominic Perrottet gives his 2021-22 budget media conference at the NSW Treasury Offices in Sydney. Picture: NCA NewsWire / Dylan Coker

Economic growth and recovery has been prioritised over the budget bottom line, which is partly the reason we have been able to reinstate hundreds of thousands of jobs.

But it all catches up. The path back to a $466m surplus in 2024/25 is tenuous at best, with many risks and pitfalls lying ahead.

Perrottet, quizzed heavily on just how reliable the path to surplus is, mounted a fired-up defence, saying the government had willingly invested in a public servant pay hike and that the stimulus measures had worked.

He said he was proud to invest in services and sweeteners for families.

But he also confidently insisted the budget would be “back in the black”.

These are words that have a tendency to come back and haunt Treasurers.

Only time will tell.