NSW: NSW Facing a billion-dollar budget blow-out: Oppn

AAP General News (Australia)
12-14-2004
NSW: NSW Facing a billion-dollar budget blow-out: Oppn

SYDNEY, Dec 14 AAP - NSW was facing a billion dollar budget blow-out due to the Carr
government's financial mismanagement and the lacklustre performance of the vendor tax,
according to the state opposition.

Treasurer Michael Egan today announced general government debt had been eliminated
in NSW, 15 years earlier than expected.

But the mid-year financial review to be released by Christmas - would also show a $680
million net lending deficit, up from $379 million predicted in the budget.

Mr Egan blamed the higher deficit on slightly lower than expected revenues and higher
expenses, particularly in health.

He said in future budgets the government would focus on the net operating result, instead
of the net lending result.

But opposition leader John Brogden said Mr Egan was simply "changing the (budget) goalposts".

"This is like a bloke who fails his maths test but then changes the questions to suit
his answers," he told reporters in Sydney today.

"The creativity we've seen with a change of definition as to how the budget will be
reported that'll take us from a deficit back into a surplus, is frankly appalling."

The deficit had blown out $300 million over the past 12 months, he said.

"The likelihood is that blow out will go further, and we are facing in NSW the likelihood
of a $1 billion budget deficit by the end of this financial year," Mr Brogden said.

"The greatest single disaster for finance in this state over the last 12 months was
Michael Egan and Bob Carr's decision to introduce the vendor duty," he said.

After 10 years as treasurer, Michael Egan was "over the job".

AAP kp/nf/cjh/jlw

KEYWORD: BUDGET NSW BROGDEN

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