NSW Budget Forecasts $2.3 Billion Deficit in 2026–27

However, NSW Treasurer Daniel Mookhey has predicted a return to surplus in the next three financial years.

New South Wales (NSW) Treasurer Daniel Mookhey delivers the NSW government post budget address to attendees at the Committee for Economic Development for Australia (CEDA) luncheon in Sydney, Australia on June 25, 2025. AAP Image/Dan Himbrechts

The New South Wales (NSW) budget, delivered on June 23, reveals the state government is projected to record a $2.3 billion (US$1.59 billion) deficit in 2026–27, more than double the figure forecast in the half-yearly update.

However, NSW Treasurer Daniel Mookhey has forecast a return to surplus, projecting it at $1.1 billion in 2027–28, rising to $1.8 billion in 2028–29 and $1.9 billion in 2029–30.