The NSW state budget recently released looks positive and might...

The NSW state budget recently released looks positive and might also help drive eps growth in addition to OTHER state budgets released ALL with a much heavy emphasis on infrastructure spend than any OTHER sector in their respective states over the coming years


Capital works

The Government said it would spend a record $44.6 billion on services in 2007/08, with about 40 per cent funded through net debt, while capital expenditure would reach $12.5bn.


The announcement yesterday of almost $50 billion in capital works projects over the next four years would also give the building industry a major boost, he said.

"Importantly, we are seeing the State Government invest in major infrastructure projects in areas that are starting to open up for new housing.

"We welcome the State Government's decision to play an important part in providing the infrastructure for new housing and now look to the commonwealth government to start helping provide major infrastructure in metropolitan areas.

"There is a long way to go to restore housing affordability, but the NSW Government has signalled that it prepared to make some tough decisions."

The NSW Government has delivered its 12th consecutive budget surplus as it prepares to spend a record $44.6 billion on services and cut taxes.

'Economy to strengthen'

"The economy is expected to strengthen, with continued solid consumer spending, significant public sector investment, and a moderate recovery in the housing sector," Mr Costa said.

"Housing construction is expected to contribute to overall growth for the first time in three years.

"All of these factors should see continued above-trend growth in employment, leading to a further decline in the already historically low unemployment rate."

The budget papers said the prospects for the NSW economy beyond 2007/08 would depend on the strength of the global economy, the business cycle, domestic policy settings and productivity trends.