Because of this Government’s reckless spending agenda, that includes $71 billion in new spending compared to last year, the NSW Liberal Government will be forced to borrow an additional $118 billion over the next four years, at a time when interest rates are on the rise.
 
This astonishing number was revealed in a press release issued by TCorp, the NSW Government debt issuer.

If the Liberals have their way, by 2025-26, NSW will be in $182.2 billion in gross debt and paying more than $5.5 billion in interest payments – that is equivalent to $21,500 in debt, and $700 interest payments every year, per person in NSW.
 
To put it into perspective this is double the amount of debt Queensland will issue in the 2023 financial year and one-third more than Victoria.
 
This comes off the back of ratings agency Moody’s issuing a warning which said that the NSW Budget “credit negative” as a result of “new recurrent spending programs that will widen the state’s operating deficits beyond our initial expectations.”
 
Moody’s has always warned this new spending “heightens the state’s vulnerability to an expected revenue decline.”
 
Daniel Mookhey, NSW Shadow Treasurer said:
 
“Twelve years in and we are headed towards $182.2 billion in gross debt, our AAA credit rating shredded, and interest repayments which will grow at 24 per cent a year – every single year.
 
“Mr. Perrottet announced $71 billion in new spending, and his plan to pay for it is debt, debt, debt and even more debt.”
 
“It is a buy now, pay later budget for NSW. And it’s future generations who will have to pay for this Government’s reckless.”
 
“Interest rates are on the rise and every person who has a mortgage knows that it’s no different for government.
 
“What we will see as a result of the spending splurge by the NSW Government to catch up on for more than a decade of underinvestment is higher debt which results in higher interest payments, which means we have less money available to us, for our schools, our hospitals, our police forces and other vital public services.”

DANIEL MOOKHEY MLC
NSW SHADOW TREASURER