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New South Wales Budget 2024-2025

The Minns Government’s second budget lays a sensible foundation for economic growth in New South Wales. Unlike other state budgets, the NSW government has shown relative restraint on spending this year, rather than embarking on a cash boom to ‘beat’ cost-of-living pressures and risk further fueling inflation stir up. New spending will go to key areas of service need, such as disaster relief, housing and homelessness, and domestic and family violence programs. However, there was little new financing for the net zero transition or for other measures to boost investment and business productivity.

The Treasurer has distributed a large portion of the Goods and Services Tax (GST) and broken down its impact on overall government revenue. Much less noise has been made about the positive impact of higher stamp duty and land tax revenues. The government chose to spend more money than it planned even six months ago, and has not identified any major cuts or announced a plan to do so. In the short term, support for the fragile economy is justified. But more fiscal consolidation work will be needed in coming years as rising debt burdens push interest costs to $10 billion a year by 2027-2028.