Deficit halved as NSW budget repair continues

The NSW Report on State Finances shows a budget deficit for 2024-25 of $5.1 billion. This is around $600 million lower than forecast in the June budget and significantly better than the $10.7bn deficit of 2023-24.

The $5.6bn result is NSW’s biggest year-on-year fiscal consolidation.

Expense growth was 1.8 per cent. Over the two financial years to 30 June 2025, NSW had the lowest rate of growth in operating expenses of any Australian government.

For the second consecutive year NSW has a cash operating surplus – reported at $4.3bn.

Gross debt was $166.0bn, $5.6bn lower than projected at the Pre-Election Budget Update (PEBU).

This debt reduction was achieved despite a $12bn GST revenue hit shortly ahead of the 2024-25 Budget.

The NSW Report on State Finances is the consolidated year-end audited accounts for the government, providing a whole-of-state view of assets, liabilities, revenues and expenses. It can be read in full here.

The Half Yearly Review, to be released next month, will provide an update on the State’s fiscal and economic performance since the 2025-26 Budget.

Treasurer Daniel Mookhey said:

“With inflation continuing to put households and businesses under pressure, the need for a prudent budget approach remains.

“Fixing the fundamentals has kept debt and expense growth as low as possible.

“The Minns Government’s work on budget repair continues to see the deficit being reined in.”