Our Budget result

Sharing the benefits of our strong financial position

Our budget is in an excellent position. A surplus of $2.7 billion in 2017-18 and average surpluses of $2.0 billion are forecast over the budget year and forward estimates.

This enviable budget and fiscal position is the product of our careful management of expenses, successful asset recycling strategy and an ongoing commitment to finding new ways to deliver better services for the best value for taxpayers.

Our strong financial management makes it possible to deliver the high-quality services the people of New South Wales need, as we continue to deliver record infrastructure, all while maintaining our triple-A credit rating.

Our asset recycling program is delivering for communities

The recent lease of 50.4 per cent of Endeavour Energy marks the end of the successful electricity networks transactions. The transactions will enable the Government to deliver in full the $20 billion Rebuilding NSW plan through Restart NSW.

The success of our asset recycling strategy has boosted the budget position and significantly reduced net debt in the short term. Net debt is projected to be negative $7.8 billion at the end of 2016-17, the lowest since records began in 1996-97. Net debt as a percentage of Gross State Product (GSP) is forecast to remain lower than any other mainland state over the next four years.

The net proceeds from the Government’s asset recycling program are being invested into the NSW Infrastructure Future Fund until they are required.

The Government’s asset recycling program and strong financial management have contributed to expected annual growth in the State’s net worth of an average of 8.5 per cent over four years to June 2021 – faster than any other mainland state – with net worth expected to reach an unprecedented $273.2 billion by June 2021.

Reaping the rewards over the long term

Delivering a once-in-a-generation infrastructure program brings huge benefits to the State, but they do not stop when construction ends. These new projects will deliver significant and permanent improvements.

How will we benefit? New roads, hospitals, public transport and other key projects will add to the long-term productive capacity of the NSW economy.

Improved transport infrastructure will reduce travel times, reduce traffic bottlenecks and bring markets together.

This will support additional housing supply and bring people closer to education and jobs, expanding economic opportunities. Social infrastructure, such as hospitals and schools, will improve the quality and reach of our health and education services, supporting healthier citizens and opening the door to opportunity for more people.