Independent Parliamentary Budget Office confirms Labor's election spending

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The independent Parliamentary Budget Office (PBO) has today released Labor’s spending and savings measures for the election campaign – the first time in Australian political history an opposition has put its costings through an independent PBO.

Labor's plan for NSW prioritises investment in our schools and hospitals while maintaining the state's AAA credit rating, keeping the budget in surplus and not increasing debt. 

The independent PBO has confirmed that Labor’s plan is fully funded and fully costed.

Unlike the Liberals, Labor is not relying on a risky plan to privatise our valuable electricity network in order to fund election promises.

Labor’s new spending commitments are offset by responsible savings measures which support a leaner government without cutting funding to areas that are most important to NSW families.

Key points in today’s PBO report on Labor’s election commitments include:

  • Increasing capital expenditure by $1.3 billion over the forward estimates above what is currently budgeted. These funds will support the roll-out of Labor’s infrastructure plan A Better Way
  • An increase in the surplus by $1.13 billion over the forward estimates, used to fund additional capital expenditure; and
  • Labor’s commitments do not impact the states borrowing – in fact borrowing goes down by $70 million.

Labor has been able to achieve this through the following savings measures:

  • A $900 million reduction in government spending on consultants and contractors, which has almost doubled under the Liberal Government;
  • Deferral of business stamp duty taxes raising $957 million over the forward estimates;
  • A reduction in the number of Senior Executive Staff (SES), saving $220.3 million;
  • Cutting travel, legal advice and advertising by $152.4 million; and
  • Leaner and more efficient government executive – saving $44.4 million by reducing the number of ministers to 17, cutting ministerial staff numbers by 24.9 FTEs and reducing the number of senior ministers from 8 to 7.

Quotes attributable to Labor Leader Luke Foley

“Labor has a positive plan to invest in schools and hospitals without privatising our valuable electricity network.

“Labor has prioritised investing in the schools and hospitals NSW needs for our future.

“Today the independent PBO has confirmed Labor’s plan is fully-funded and fully costed.

“In contrast to Labor’s plan - Mike Baird and the Liberals have a risky plan to privatise the state’s electricity network.”

Quotes attributable to Shadow Treasurer Michael Daley

“Good economic management is about creating jobs, supporting skills and investing in public infrastructure.

“Labor’s spending commitments this election are offset by responsible savings measures which support a leaner government without cutting funding to areas that are most important to NSW families."

Read Labor's economic statement 2015.