NSW government inherits $7 billion worth of pressures on state budget

A treasurer has revealed a $7 billion issue in his state’s budget inherited from a previous government and how he plans to fix it.

NSW Treasurer Daniel Mookhey has outlined the multi-billion dollar challenges facing the newly elected Labor government.

The NSW government announced it would deliver its first budget in September after discovering $7 billion of “difficult to avoid pressures” left behind by the Perrottet government.

Among the pressures are an unfunded program responsible for the jobs of more than 1000 nurses and funding shortfalls for cybersecurity and Out of Home care for children.

“I’m going to be honest with the people of NSW – we are inheriting significant economic challenges and difficult to avoid pressures on the budget, including unfunded government programs,” Mr Mookhey said.

“We also know that the former government has handed over to us the largest debt in our state’s history.

Treasurer Daniel Mookhey said the government has inherited $7 billion of budgetary pressures. Picture: NCA NewsWire / Justin Lloyd

“We have high inflation, higher interest rates, historic debt – this is about painting a full and honest picture of what is really going on.”

The Treasurer said the government remains in a position to deliver its election commitments after planning savings which will “more than offset” any additional spending contained in its campaign.

“We intend to calmly and methodically work through the budget line by line to ensure that every dollar that the public is spending is delivering maximum value for the services people expect,” Mr Mookhey said.

He said he had no interest in casting blame on the Perrottet government. Picture: NCA NewsWire / Nicholas Eagar

However, the Treasurer said he was not interested in “casting blame” and his message to the people of NSW is its government will fix essential services.

As for the casino tax, Mr Mookhey said there are no changes to the government’s stance, but that the Perrottet government’s policy was not “properly formed” and lacked consultation.

He said he will be meeting in person with staff members and the union over any potential impacts of the proposed tax.

Mr Mookhey said he will be meeting with casino staff members to discuss the impact of a proposed tax. Picture: NCA NewsWire / Gaye Gerard

“These challenges can’t be fixed overnight; they will take time and there will be tough choices,” Mr Mookhey said.

“But I’m confident we have the right rescue team in place to ensure we can focus on rebuilding our essential services and investing in the people who look after us.”

An update on the government’s progress will be provided to the public in parliament in June.

Addressing the state’s budget is one of the Minns government’s first challenges after being elected in March. PICTURE: Pool /Dan Himbrechts / Via NCA NewsWire

The September budget will be informed by an expenditure review undertaken by the Minister Finance Courtney Houssos and a strategic infrastructure review of significant capital works, led by independent Planning Commissioner Ken Kanofski.

The timing of the September budget release is similar to the 2011 Liberal government’s, which was also installed after a March election.