If NSW Treasurer Eric Roozendaal’s first budget (and NSW Labor’s 15th) confirms anything at all, it’s that NSW public finance is at the mercy of the property market.
The fiscal picture is a $1.3 billion deficit for the current year, $900 million for 2009-2010 and a surplus next in sight during 2011-12 on the back of a projected recovery in stamp duty receipts.
Three stimulatory measures are directed at driving property activity. One is for existing home-owners — a halving of stamp duty for home sales under $600K until December 31 (but since homes under $500K already have no stamp duty, this is a narrowly-target fillip). Another is a $3000 bonus to first home buyers for newly-constructed homes. Finally, there’s $200 million of interest-free loans to local councils to fund infrastructure projects.
There’s also $2.7 billion for a proposed new CBD metro (NSW citizens have lost count of the number of major infrastructure projects this government has announced and then rescinded). But almost all the new infrastructure money in this budget comes from a $5 billion transfer payment out of Federal funds from phone-a-friend Kevin Rudd.
Apart from these property-dependent maneuvers, there is one glimmer of actual governance taking place, in a proposal to create 13 super-ministries from the current melange of over 150 NSW government agencies.
However, restructuring seems to be this government’s #1 activity. Friends of mine in the NSW service have been through no less than 8 departmental mergers and de-mergers since 1996. Perhaps Roozendaal is hoping for a stationery-led recovery?

Michael Costa has taken a leaf out of Mark Latham’s book… Forced out of office and Parliament? Write 
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