NSW faces $10 billion hit as revenue falls, analysis shows | swrighteconomy
States and territories face a GST shortfall of at least $33 billion – with NSW alone facing a $10 billion hit over the next four years – as they come under pressure to boost infrastructure spending to help lift the country out of recession.
"With Victoria out of action it puts more pressure on us and what it does mean though is that colleagues in other states need to consider where their state will be in six months' to 12 months' time if they don't encourage their borders coming down," she said."We know the Victorian situation is very different but I'm still not understanding why states aren't allowing NSW residents to interact with them, given the number of cases.
If the federal Treasury and budget office forecasts are correct, the cumulative shortfall in GST to be shared among states and territories between last year's federal budget and 2022-23 is at least $33.2 billion. "In the middle of the mining boom the state of WA had receipts coming in, then at the end of the mining boom went cap in hand to the federal government who then topped up," Mr Perrottet said.
"Upcoming budgets will disclose large non-discretionary declines in state revenue from taxes, fees and GST grants," he said.Modelling by the NSW Treasury released this week suggested Victoria's coronavirus lockdown would reduce the national GST pool by $300 million and cost NSW $91 million in reduced revenue this year. But the broader impact of the coronavirus recession, including the lockdowns imposed by all states and territories in March, is substantially larger.
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