NSW set for surge of economic growth, but risks are ‘elevated’

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NSW set for surge of economic growth, but risks are ‘elevated’
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Analysis: NSW set for surge of economic growth, but risks are ‘elevated’ | MattWadeSMH

The unemployment rate, which is now 4 per cent in NSW, is forecast to fall to 3.5 per cent by 2023-24.

The budget promises $27 billion in new government spending over five years, although the government attributes a portion of that to “unprecedented levels of emergency support” including the response to devastating floods and the ongoing effects of COVID-19.Major new spending initiatives include cost of living support for households and measures to boost women’s economic opportunities.

There will also be $2 billion in budget repair measures over four years to 2025-26 including $645.8 million in savings through the introduction of a further public sector efficiency dividend commencing in 2023-24. Also, the foreign investor land tax surcharge of 2 per cent will increase to 4 per cent per year from the 2023 land tax year, generating additional revenue of $294 million over the four years to 2025-26.

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