The NSW budget deficit has blown out by more than double what was forecast less than six months ago.
The state government has released its half-yearly budget review with a revised deficit of $19.5 billion.
In June's state budget, which was handed down just days before Greater Sydney was plunged into lockdown for more than four months, the deficit was projected to be $8.6 billion.
Treasurer Matt Kean today said money spent on JobSaver and COVID support had contributed to the blowout.
"This deficit is as a result of significant investments we made in our health system, in keeping us safe and supporting business and keeping our economy going," Mr Kean said.
The state spent $3.5 billion on the JobSaver program.
The government continues to promise a return to surplus in 2024-25, despite the dramatic increase in the deficit.
"The spending measures were temporary and targeted which means we are able to chart a path back to surplus," Mr Kean said.
The Treasurer hasn't ruled out more privatisation of assets to achieve that result and remains committed to the government's $110 billion infrastructure building program.
The half-yearly review also forecasts revenue will be $14.2 billion more over four years to 2024-25, than predicted in the June's budget.
"Our economy is roaring back to life," Mr Kean said.
"That's seen stamp duty up, that's seen GST revenue up, that's seen mining royalties increase as well."
The Treasurer remained non-committal to pursuing the reforms of his predecessor Dominic Perrottet, who is now the state Premier, to replace stamp duty with an annual land tax.
"If we transition from stamp duty to a broad based land tax that will come with a fiscal impact to the state's financial statements in the short term," Mr Kean said.
"We're talking to the Commonwealth and we would obviously like them to invest in helping us solve this challenge."
The Treasurer has promised to return the 234,000 jobs lost during this lockdown by the first quarter of next year.
