NSW plunges further into the red

(AAP) - NSW Treasurer Eric Roozendaal says the state is feeling the effects of the global financial crisis as it plunges further into the red.

September figures show NSW is now $656 million in deficit.
The result represents another $493 million added to the August result of $163
million released last week - the first time NSW had recorded a monthly deficit since
October 2000.
"More than any other state, NSW is feeling the effects of the global financial
crisis," Mr Roozendaal told parliament.
"The deterioration in the budget result that I announced last week shows that NSW
families, businesses, and government incomes have been feeling effects of the global
economic crisis since at least the start of the year."
Similar results would see NSW record double the $1 billion deficit the NSW
government has warned the state is facing.
Mr Roozendaal said the latest results further emphasised the need for the November
11 mini-budget.
"The government must reduce recurrent expenses and re-prioritise the forward capital
program to address the shortfalls in income that are being experienced," he said.
"This means tough but necessary decisions will be announced in the mini-budget to
put NSW on a sustainable footing."
But the state opposition has accused Mr Roozendaal of trying to overplay the effects
of the global financial crisis.
Opposition treasury spokesman Greg Pearce said the figures showed NSW' financial
woes had been brought about by overspending in employment and operating costs.
He said that at the same time the figures showed state revenues in September were
actually higher than they had been at the same time last year.
"The problem that they've had for years of expenses running out of control is
contributing a very significant part of this forecast deficit," he told AAP.
Mr Pearce said the "bounce back" in revenue in September showed the problems with
having a mini-budget so early in the financial year.
"They are also doing it before the Council of Australian Government's (COAG'S)
meeting to determine health funding and disability funding, before any revised
figures on GST and before federal government decides its infrastructure spending,"
he said.
"How reliable is this mini-budget going to be, are they going to have to come back
and change it all again in the mid-year review?"
Mr Roozendaal will hand down the mini-budget at noon (AEDT) on November 11.