NSW Treasurer hands budget featuring a $14 billion windfall

The NSW Treasurer has handed down the state budget.

Daniel Mookhey has delivered his second budget which came with a pre-warning to to not expect much spending as a result of a $14 billion dollar shortfall.

The papers have revealed the state is billions of dollars worse off over the next four years than it had previously forecast, due to the federal governments goods and services tax carve up. The changes mean the state will only be getting back 87 cents of every dollar of GST it contributes to the national pool of revenue, down from 92 cents.

In the lead up to the budget being delivered, hundreds of millions had been set aside for the two year extension of the Eraring Power Station, with the government potentially paying owner Origin up to $450 million if the plant runs at a loss.

Two schools at Huntlee and Medowie are set to be delivered as part of a $1.4 billion regional school building program. Education Minister Prue Car made a trip to Huntlee on Saturday to announce the plans for the long awaited and previously announced schools.

$110 million will be spend on upgrading the New England and Golden Highway’s to accommodate the transport of wind turbines from the Port of Newcastle to rural and regional clean energy zones.

An additional $26.5 million will be delivered for the planned upgrade of Cessnock Hospital. The new funding is set to be added to the $111 million announced for the project back in 2021.

In terms of roads, the M1 Motorway extension to Raymond Terrace will receive $395 million, the Singleton Bypass $191 million, Muswellbook Bypass $11.7 million and the Mandalong Road upgrade $1.8 million.

Daniel Mookhey also says the budget includes a commitment to buy land to protect the Butterfly Cave in the Hunter. It follows a 13-year campaign from the local Awabakal community for it be protected.

The Hunter will also be hoping to benefit from a $447 million dollar package to extend the life of the Tangara trains. The fleet was built in Broadmeadow back in the late 1980’s. The state government pledged ahead of being elected in 2023, that it would return domestic manufacturing to NSW.

Finally, while no funding has been set aside for the Hunter Park and Broadmeadow strategy, a 30-year masterplan was unveiled last month. It’s estimated the projects would cost up to $3 billion over the next three decades.