Fiscal sustainability for future generations
The NSW Government is committed to maintaining sustainable debt levels over the medium term. The 2022-23 NSW Budget projects a stabilisation of net debt at about 14 per cent of Gross State Product by June 2026, followed by a gradual decline towards the end of the decade.
To manage net debt to sustainable levels, the NSW Government has undertaken the following initiatives:
WestConnex transaction: completing the sale of the Government's residual stake in WestConnex for $11.1 billion.
Debt retirement: using the NSW Generations Fund and the proceeds of the WestConnex sale to retire $11 billion over a two-year period.
Sustainability bonds: the NSW Government is one of the largest semi-government issuers, with $7.0 billion in bonds issued to help diversify the State's investor base and facilitate capital flows towards ESG objectives.
The 2022-23 NSW Budget also includes $2.0 billion in budget improvement measures to support fiscal sustainability and a return to surplus, comprising:
$1.4 billion from revenue measures, including amending the point of consumption and betting tax rates, increasing the foreign investor surcharge land tax rate, a reduction in the discount available for the early payment of land tax, and investment in additional compliance within Revenue NSW.
$645.8 million in savings measures largely through the introduction of a further efficiency dividend from 2023-24 to 2025-26 onwards and lower wages growth for senior executives.