“Today’s NSW Budget treads carefully given the challenging economic times ahead for the State’s economy,” said Helen Waldron, NSW State Head at the national employer association, Australian Industry Group.
“The Budget paints a worrying but realistic picture of the NSW economic outlook – with growth slowing, unemployment rising and household spending weakening. The inflationary impacts of the conflict in the Middle East, and tightening monetary policy, will impose a heavy burden on the NSW economy and households.
“Today’s Budget takes a responsible approach to this economic setting, balancing fiscal sustainability against relief measures. The centrepiece is a range of cost-of-living measures for transport costs, which recognise financial pressures on households. Importantly these measures are temporary, reflecting the severe but short-term nature of the inflationary crisis.
“This temporary relief is complemented by longer-term measures focused on larger challenges for NSW and Australia as a whole – housing, infrastructure, skills and regulation. Reforms to planning arrangements and support for building innovation and productivity are particularly key to improving direly-needed new housing supply.
“Commendably, the NSW Government has exercised fiscal responsibility, ensuring that growth in expenditure is kept at manageable levels. This is especially important given the revenue risks confronting the NSW Budget as the housing market cools. The Budget forecasts gross debt to stabilise at around 20% of GSP, which will be challenging to achieve in coming years but sets an important marker for responsible fiscal management.
“However, the challenges facing the NSW economy over the coming year cannot be ignored. We do not know how long or deep the economic impacts of the Middle East crisis will prove, but we can be sure more difficult times are coming. Careful policy decisions will continue to be required in the months ahead,’ Ms Waldron said.
