NSW: Property boom linked to budget surplus

AAP General News (Australia)
12-21-2001
NSW: Property boom linked to budget surplus

A property boom fuelled by first home owner grants has delivered an unexpected budget
surplus of more than $700 million for the New South Wales government.

But State Treasurer MICHAEL EGAN, releasing the government's half-yearly 2001-02 budget
review, denies the overflowing coffers will fund a pre-election spending spree.

The projected $713 million surplus is almost triple the government's expectations.

But the extra revenue will bring no relief to motorists using the Sydney Harbour Bridge,
with the government refusing to dip into the fund in place of hiking up the bridge toll.

The toll is set to rise by 80 cents to $3 from January 11.

Mr EGAN says the surplus will be kept for unexpected costs such as the $600 million
pledge to help pay HIH claims or the decision to cover specialist doctors' insurance liabilities.

He says the strong budget position put New South Wales in good stead to face a possible
slowdown in the economy.

But New South Wales Opposition leader KERRY CHIKAROVSKI says the government can't take
credit for good economic management when its financial gains are linked to tax slugs.

The bridge toll is expected to deliver a further $60 million windfall.

AAP RTV ls/dl/tb

KEYWORD: BUDGET NSW (SYDNEY)

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