New South Wales is set to invest a record $108 billion on infrastructure projects over the next four years as the state ramps up major work.

Releasing the state’s budget for 2021/22, NSW Treasurer Domonick Perrottet said capital investment will rise from $25.440 billion in 2020/21 to a record $30.350 billion in 2021/22.

Over the four years to 2024/25, the infrastructure spend will amount to $108.5 billion – equivalent to an annual average of $27.1 billion.

This is well above the $22.6 billion annual average over the four years to 2020/21 and $15.4 billion in the four years prior to that.

Commitments include:

• $12.0 billion over the next four years for Sydney Metro West
• $3.1 billion over the next four years for the More Trains, More Services program to modernise the rail network
• $2.7 billion over the next four years for the M6 Stage 1
• $2.1 billion over the next four years in new capital expenditure to deliver 44 new and upgraded schools taking overall investment in school infrastructure to $7.9 billion over four years
• $2.0 billion over the next four years for the Great Western Highway upgrade, co-funded with the Commonwealth
• 9 billion over the next four years for WestConnex
• $1.3 billion over the next four years for the Mariyung Fleet (new Intercity Fleet)
• $1.3 billion over the next four years for the Northern Road upgrade and the M12 Motorway
• $717.9 million over the next four years for the Transport Access program
• $683.5 million over the next four years for road safety investment
• $588.1 million over the next four years for NSW bus services, including new buses, identifying new bus routes and continuing the transition to low-emissions transport fleet
• $168.7 million over four years to continue planning, design and pre-construction of the Muswellbrook bypass
• $115.6 million for the construction of Henry Lawson Drive widening between Tower Road, Georges Hall and Auld Avenue, Milperra (Stage 1) to double capacity and reduce congestion and to continue the development of Stage 2 between Keys Parade and the M5 Motorway; and
• $50.0 million over three years to continue planning and development of the Parramatta Light Rail Stage 2, connecting to Stage 1 and continuing north through Ermington, Melrose Park and Wentworth Point to Sydney Olympic Park.

This comes as state’s finances have fared better than expected amid an economy which has rebounded to pre-COVID levels.

All up, the budget deficit is expected to come in at $7.9 billion for 2020/21.

This compares with a $16 billion deficit which was forecast last October.

The state is now expected to return to surplus in 2024/25.

Meanwhile, the state’s economy is expected to grow by 3.5 percent in 2021/22 whilst unemployment is expected to fall to 4.5 percent by 2024/25.

Net debt, however, will rise from just over $40.6 billion or 6.3 percent of GDP as at June 30 2021 to $63.2 billion or 9.3 percent of GDP in 2021/22 and 103.9 billion or 13.7 percent of GDP by 2024/25 as the state borrows to finance its capital program.

The state has also committed to a program of reform to boost productivity.

In particular, the Government will now publicly report every six months on progress in implementing the 60 reforms recommended by the NSW Productivity Commissioner in its white paper released last month.

These cover areas such as training and education, innovation, infrastructure, housing and smart infrastructure.

In his budget speech, Perrottet says the state has rebounded strongly from COVID.

“NSW is back,” Perrottet said.

“From the deepest recession in our lifetime, we are back to growth, and back on track …”

“… Today, other governments are raising taxes and cutting wages, sacrificing growth to save their Budgets.

“In NSW we do not have to make that choice. The future we imagine is not built on austerity.

“This is a Budget for our future prosperity. Another decade of delivery has already begun.

“And this Budget gets NSW dressed for success.”

Building and development lobby groups applauded efforts to get the economy and the budget back on track but say the budget was a missed opportunity for further action to address housing affordability challenges.

“The release of the State Budget today has confirmed the Government’s successful stewardship through the COVID-19 pandemic with forecasts of the budget deficit being only half that predicted a year ago,” Urban Taskforce Chief Executive Officer Tom Forrest said.

“However, the budget is almost silent on the BBQ stopper subject of housing supply and new home affordability.”

“This is a missed opportunity.”