Let’s take a step back to the budget impact statements yesterday, where the Parliamentary Budget Office (PBO) warned Labor may struggle to secure the savings needed to pay for higher public service wages and concluded party would deliver smaller budget deficits in the next two years than a Coalition government.
The PBO assessment triggered a war of words four days before Saturday’s poll, with Premier Dominic Perrottet accusing the opposition of deceiving voters and Labor arguing it had presented a more responsible budget plan.
Premier Dominic Perrottet and Opposition Leader Chris Minns on the campaign trail on Monday.Credit:Dominic Lorrimer, James Brickwood
Wages have been one of the most contentious policy debates in the election campaign and the Coalition’s key economic weapon against Labor. Perrottet has repeatedly warned that removing a cap on pay rises for frontline workers would blow a hole in the budget and threaten the state’s infrastructure pipeline.
In an unexpected intervention, the PBO drew attention to Labor’s pledge to scrap the government’s 3 per cent cap and pay for any additional wages expenses through productivity savings.
The PBO said achieving those gains would depend on a Labor government’s ability to negotiate improvements with unions.
“The historical experience in NSW is that this has proven difficult in practice,” the office said.
Read the full from senior economics writer Matt Wade, and state political editor Alexandra Smith, here.