Global ratings agency Moody's has affirmed NSW's triple-A credit rating with a stable outlook, following the Minns Government's 2023-24 plan to stabilise the State's finances.
The State's fiscal position had weakened in recent years but the Government's Comprehensive Expenditure Review identified $13 billion in budget improvements, revenue and reprioritisation measures to help stabilise the fiscal position.
These funds will be reinvested into essential services to help keep the State's overall expenses at a manageable level. As a result, the 2023-24 NSW Budget projects an improved surplus of $844 million in 2024-25.
The Government has also taken steps to reduce the impact of the NSW Generations Fund and Transport Asset Holding Entity on the State's balance sheet, with gross debt projected to be $173.4 billion by June 2026, which is $14.8 billion below the 2023 Pre-election Budget Update.
Net debt is now projected to peak at 12.6 per cent of GSP by June 2027, around 1.4 percentage points lower than at the 2023 Pre-election Budget Update.
Treasurer Daniel Mookhey said:
"The Minns Government has begun the task of repairing the budget, reducing debt and rebuilding our essential services, as well as supporting families and providing targeted cost-of-living relief.
"We are still in the early stages of setting NSW's finances on a sustainable footing. We look forward to continuing this work in the next budget."
