NSW government turns home buyer of last resort

The NSW government’s budget papers show that the state is expected to post a deficit of $5.7 billion for the 2024-25 financial year. The deficit is projected to narrow to $3.4 billion in 2025-26, although it is well above the $2.2 billion deficit that Treasury had forecast in the mid-year budget update.

Treasurer Daniel Mookhey flagged the possibility of modest surpluses of about $1.1 billion in 2027-28 and the following fiscal year.

The most significant new initiative in Tuesday’s state budget is Labor’s pledge to guarantee up to $1 billion in new housing developments.