In handing down the State Budget for 2011, the NSW Treasurer, Mike Baird, confirmed that NSW would slide into deficit this financial year by around $718 million.
In announcing this result, the Treasurer also signalled a plan to slash costs by $8 billion over the next 4 years and create a platform to rebuild the state.
The main cuts to spending will come out of:-
- The axing of 5,000 public service jobs over four years;
- The privatisation of Port Botany;
- Restructuring th existing stamp duty exemption for first home buyers;
- A 1.5% efiiciency dividend to be imposed on government departments;
- Changes to government procurement acitivies including contracts, travel and advertising;
- An increase in mining royalties in NSW; and
- Increase in the climate change fund levy from 2013-14 – adding up to an average of $12 to household electricity bills
Major spending initiatives include:-
- Capital works program to build and upgrad new hospitals and schools;
- Building of the North-west and South-west rail links; and
- Upgrades to the Pacific Highway.
Some of the forecasted economic numbers to also come out for NSW include:-
- Expected state GPD will be around 2.5%;
- 1% employment growth;
- Unemployment rate in NSW to be around 5.25%;
- CPI in NSW to be about 2.5%; and
- Wages growth estimated to be about 4%.
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