Drop in GST revenue to cost NSW 'more than COVID'

Daniel Mookhey says protecting families is more important than NSW's AAA credit rating. (Bianca De Marchi/AAP PHOTOS)

Budget shortfalls due to the upcoming GST carve-up will hit NSW harder than the impact of the COVID-19 pandemic, the state's treasurer says.

Daniel Mookhey says an expected $11.9 billion four-year drop in income could cause his state to delay major school and hospital funding agreements with the federal government until after the June budget.