NSW budget update shows $555 million improvement on previous forecast
The New South Wales Government's half-yearly review has revealed a turnaround in the budget bottom line this financial year, but smaller than expected surpluses over the forward estimates.
NSW Treasurer Andrew Constance is now forecasting a budget surplus of $272 million in the 2014-15 financial year, a $555 million improvement on the deficit predicted in the June budget.
Mr Constance said higher than expected property transfer duties were a significant driver of the improved result, but had been partially offset by softening payroll tax and mining royalties.
The surpluses expected over the next few years have been revised down.
Mr Constance said overall the NSW economy was strong, with net debt now forecast to fall to $9.3 billion in June 2015, compared to the $12.4 billion forecast at budget time.
"While the Australian economy is facing its challenges, NSW is riding a wave of prosperity built on the tough choices we made coming to Government," Mr Constance said.
Mr Constance also provided more details on the Government's planned sell off of electricity poles and wires, after the it considered the findings of a scoping study by Deutsche Bank and UBS.
He revealed the Government would lease out 100 per cent of Transgrid and just over 50 per cent of Ausgrid and Endeavour Energy.
The country-based distribution network Essential Energy, as agreed in a deal with Nationals MPs, would remain 100 per cent government owned.
Transgrid would be the first distributor put on the market.
Mr Constance said the plan meant the Government would retain 51 per cent of the network overall.
The government argues the sale is necessary to provide funding for a $20 billion infrastructure strategy it has recently unveiled.
