Desperate to turn NSW from an economic pariah into national powerhouse, Treasurer Eric Roozendaal revealed a modest deficit of almost a billion dollars for 2009-10, but the state will be $1.3 billion in deficit for 2008-09.

Announcing the first budget deficit after 12 years of surplus, the Government reigned in public sector spending to avoid losing its highly valued credit rating and face higher interest payments plus an inability to attract investors to the state.

The Liberal Opposition were quick to go on the attack over the budget deficit and criticised the Labor Government’s promise to get the budget back into surplus by 2011-12.

Goulburn MP Pru Goward scoffed at suggestions the government would be able to this and said while the state’s AAA credit rating had been maintained by this budget, it might not hold over the next 12 months.

While money has gone into roads and sewerage infrastructure in the Highlands, no money was allocated to fix Bowral Hospital or do anything about relocating Bowral Public School.

Facing an expected unemployment rate of 8.5 per cent by 2010 the government is walking a fine line of spending to stimulate the economy and avoid falling heavily into debt.

It seems the Opposition only needs to let the Rees Government continue to implode and will probably benefit from a Frank Sartor takeover heading into the 2011 election.

They aren’t offering any grandiose policy alternatives, but with a government as incompetent as this one, they won’t have to.