New South Wales’ state budget faces “severe challenges” as the economy slows and rising interest rates mean that debt repayments consume almost one-sixth of government revenues within three years, the treasurer, Daniel Mookhey, said in a special economic statement.
Mookhey’s statement, made to parliament on Tuesday, sought to highlight the budget challenges inherited by the Minns Labor government, including an extra $33bn in spending commitments made by the previous Coalition government in its final 14 months in office. These include already disclosed $7.1bn in “financial pressures”.
