Report snapshot: State finances 2024

What this report is about

This report focuses on the 2023–24 Consolidated State Financial Statements of the New South Wales General Government Sector (GGS) and Total State Sector (TSS), which comprise the Total State Sector Accounts.

It comments on the key matters and highlights significant factors that have contributed to the State’s financial outcomes for the year ended 30 June 2024.

Observations

The audit opinion on the Total State Sector Accounts for the year ended 30 June 2024 was unqualified.

The GGS's net operating balance for the 2023–24 financial year was a deficit of $10.7 billion. This was $2.9 billion more than the original budgeted deficit of $7.8 billion, and $1.1 billion more than the revised budget deficit of $9.6 billion estimated during the 2023–24 half yearly review.

Revenue growth exceeded expense growth in 2022–23 and 2023–24, after several years when expenses increased in excess of revenue as the government responded to COVID‑19 and natural disasters.

The State recorded $769 million in write‑offs of infrastructure and other assets in 2023–24, largely from transport projects including the Great Western Highway upgrade, the Beaches Link project and the Fast Rail program.

The State also wrote off $334 million of inventories including expired rapid antigen test kits and personal protective equipment.

The GGS's net debt to gross state product increased from -0.3% in 2019 to 11.4% in 2024. It is predicted to reach 14.2% of gross state product by 2028.

The State maintained its triple-A and AA+ credit ratings.

Recommendations

Seven of nine 2023 report recommendations have been addressed.

NSW Treasury is working to address the two open recommendations relating to reviewing the financial reporting exemption framework.

Fast facts
  • $10.7 billion budget deficit of the General Government Sector in 2023–24
  • $93.4 billion net debt position of the General Government Sector at 30 June 2024
  • 13 misstatements exceeding $20 million identified in the Total State Sector financial statements in 2023–24
  • $554 billion property, plant and equipment recorded in the Total State Sector as at 30 June 2024
  • $33 billion increase in the General Government Sector's investment in other public sector entities in 2023–24, mainly relating to asset revaluations
  • $1.1 billion infrastructure, inventory and other assets written off by the State in 2023–24.

Further information

Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.