Australian Federal and State Budgets - An Overview
the privatisation of public infrastructure to enable it to meet the objectives of its debt elimination legislation.”45 In 2002, for example, the Carr government sold its s h a r e i n t h e N a t i o n a l R a i l C o r p o r a t i o n , a s w e l l a s i t s w h o l l y o w n e d F r e i g h t C o r p , t a joint venture formed by Toll Holdings and Lang Corporation.46 Responsibility Act 2005 is discussed in a later section of this paper o The Fiscal .
Until 2005-06 the Carr government was able both to maintain budget surpluses and reduce the government sector net debt. In financial year 2005-06 the surplus was just over $1 billion and government sector net debt was $1.3 billion (0.4% of Gross State Product). After 2005-06 the government’s financial position began to change and, by 2008-09, the budget delivered by Morris Iemma (who succeeded Carr in 2005) produced a deficit of $879 million and general government sector net debt of $6.4 billion (1.6% of GSP). These developments can be seen in the graphs and table below:
NSW Government Budget Surpluses/Deficits: 2000-01 – 2009-1047
2,500 2,000 1,500 1,000
2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
Marc Robinson, “Can Fiscal Responsibility Legislation be Made To Work?” in Agenda, vol.3, no.4, 1996, p.426.
NSW Treasury, Treasury Focus (NSW Treasury, Sydney, 2002), p.1.
NSW Treasury, Budget Statement: 2008-09, Budget Paper No.2, p.10-11; NSW Treasury, Budget Statement: 2009-10, Budget Paper No.2, p.9-10