Treasurer Daniel Moohkey’s new NSW budget set to increase record deficit.

2GB Weekends

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NSW Treasurer Daniel Moohkey's new budget is set to increase the state’s deficit to just under $10 billion when it is unveiled on Tuesday.

NSW has been deep in deficit for five years, the longest spell of negative budget balances in living memory.

The state's financial woes were exacerbated by the controversial carve up of the GST by the Albanese Government earlier this year, in which NSW received its lowest share of revenue since the scheme's introduction more than 20 years ago.

Nevertheless, the government has already announced big spending measures on key state issues including health, housing and education.

Luke Grant grilled Daniel Moohkey on how the state ended up in this unfortunate financial position, how we can afford the billions spent in announcements and what the plan is to get the books back in the black.

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