www.news.com.aueconomists have warned the Government now also...

www.news.com.au

economists have warned the Government now also faces a perilous situation with its spending becoming unsustainable in light of flatter overall revenue projections.

This has led to extreme warnings that the Government could be forced to borrow money to pay for wages if it does not rein in its excessive spending, largely brought about by spiralling public sector salary increases.

The economic outlook follows yesterday's disclosure by The Daily Telegraph that the Government will spend an extra $1 billion a year for the next four years on building projects over and above what it had planned.

Mr Carr yesterday confirmed today's state Budget would contain record spending on roads and new cash for the health system. It is a $1 billion increase on last year's Budget.

With electricity consumption forecast to grow at 2.2 per cent a year, a $160 million sub-station will be built in North Sydney to guarantee the city power supply. More than 260 new buses will come on line at a cost of $138 million.

TAFE campuses will be upgraded as part of an $84 million plan to target Cooma and Tamworth.

The commitment to infrastructure is $30 million above last year's capital investment, bringing total spending to $34 billion over the next four years.

The State Government will for the first time be forced to borrow to fund an additional $4 billion in the capital works project.

this 'edited' version from news.com.au highlights the fact more work will come on stream in addition to the 2.6b already in the pipeline

bottom line... is that anyone involved in infrastructure works from hiring out services/equipment will be kept very busy for at least the next 2 to 3 years