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AAP
AAP
Politics
Sam McKeith

Record $8b 'slippage' in NSW expenditure

Labor's John Graham says $8 billion in capital spending being pushed to next year is astonishing. (Bianca De Marchi/AAP PHOTOS) (AAP)

NSW Treasury expects a record $8 billion worth of capital expenditure promised in June's state budget will fail to be spent this financial year.

State budget estimates hearings were told on Monday that $8 billion of $22.6 billion in capital works earmarked for 2022/23 would "slip" into future years.

The amount of "capital slippage" was a state record, the hearings were told.

"In three years time this will be down to just $50 million. This financial year it's $8 billion. An astonishing number. Has it ever been this high?" Labor's John Graham asked NSW Treasury officials.

"No, it hasn't been this high," Treasury deputy secretary San Midha replied.

The hearings were told capex failing to get spent was very high in the COVID-19 pandemic, with the officials citing "market and delivery constraints".

"That's what's driven up this increase," Mr Midha said.

Mr Graham said the data meant even though Treasurer Matt Kean announced an "enormous amount of money in the state budget", $8 billion of it "will never reach their town (or) their suburb" this financial year.

He asked the panel: "Who does know which of these projects will not be delivered this financial year?"

Treasury secretary Paul Grimes said specific project delays could not be identified as it was "expenditure slipping, not necessarily individual projects".

"We simply do not make that attribution for specific projects or specific portfolios ... NSW is not alone in this," he said.

The NSW government unveiled a big-spending budget in June, targeting first home owners, female voters and working parents ahead of March's state election.

It forecast a deficit of $11.3 billion for the current financial year, before a return to a surplus of $601 million for 2024/25.

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