NSW Treasurer Dominic Perrottet says it's the duty of everyone benefiting from the tax cuts promised in the federal budget to spend and help revive the pandemic shattered economy.
"Last night's budget was all about confidence and building confidence," he told reporters on Wednesday
"I encourage people right across our state to go out and spend and spend those tax cuts, and help smaller businesses get through this pandemic as well.
"It's our duty to help drive the economy through what's going to be a very difficult time," he said.
The COVID-19 pandemic had left a $21.2 billion hole in GST revenue over the forward estimates to 2023/24, meaning a potential loss to NSW of $6.2 billion, he said.
"We've always argued that we should move closer to a per capita share of GST ... I think there's probably greater frustration from our end in respect to states like WA having their border closed in circumstances where they've had a bailout from the federal government when it comes to GST revenues."
However, Mr Perrottet welcomed some elements of the budget, including a $2.7 billion investment in NSW infrastructure projects to underpin jobs.
The Treasurer will deliver the NSW budget on November 17.