June 2016 - Surely, there has never been a more exciting time being NSW Treasurer: there is plenty of money to spend, the books are in the black, and the State's triple-A credit rating is secure, at least for the foreseeable future.
The key figures of the 2016-17 NSW Budget:
The State's gross state product (GSP) will grow above-trend over the next two years: 3% are forecast for 2016-17, and 2.75% for 2017-18.
And the budget will be in surplus: $3.7 billion (0.7% of GSP) is forecast for 2016-17, with surpluses averaging $2 billion expected for the following four years.
As a cautionary note, Treasurer Gladys Berejiklian raised the spectre that the State's relative economic success may lead to a declining share in GST earnings. Nevertheless, the Government can afford spending big on infrastructure: a record $21.8 billion in 2016-17, and $73.3 billion over the forward estimates.
Yet, there is surprisingly little imagination for new investments in innovation. The few noteworthy initiatives include:
Job Creation
$25 million for the Sydney School of Entrepreneurship, a joint venture between various NSW universities and TAFE; and
$190 million over four years for the Jobs for NSW initiative. Jobs for NSW will also oversee the expanded delivery of the Innovate NSW Program, which provides assistance to SMEs developing technology.
Energy
More than $16 million for the continuation of the Darling Basin seismic and drilling program, exploring for suitable CO2 storage sites;
$3 million in grants for research programs focused on alternative CO2 storage, CO2 capture and coal combustion efficiency, selected from a competitive application process; and
$4 million for a NSW Coal Fired Electricity Generation Study that will provide baseline data and options for future NSW power generation based on scenario.
ICT
$17 million over four years for the operations of the new Data Analytics Centre, which facilitates whole of government projects that target difficult social challenges;
$418 million to regulate the function of workers compensation insurance, motor accidents compulsory third party insurance and home building compensation;
$241 million in 2016-17 to provide shared corporate support and services to a number of Government agencies, including procurement, ICT, human resources, finance and business services;
$124 million to enforce fair trading laws, administer licensing regimes, provide community grant assistance, and undertake regulatory reform and offer information and assistance to consumers and traders; and;
$69 million in 2016-17 to drive whole of government strategies to achieve better value service delivery from ICT across government.