NSW: Loss of grants cuts $1.1 billion from NSW budget

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NSW: Loss of grants cuts $1.1 billion from NSW budget

New South Wales Treasure MICHAEL EGAN has delayed this year's budget -- after findinga $1.1 billion hole in the state's finances.

The Sunday Telegraph says Mr EGAN has sent a letter to all ministers saying New SouthWales has lost more than $1.1 billion in federal grants over the next four years followinglast month's treasurers' conference in Canberra.

Mr EGAN says the government's budget committee will have to rewrite large sectionsof the budget and has ordered all ministers to re-do their sums.

The state budget was to have been handed down on May 28th, but that date has been pushedback to June 4th.

This budget is critical for the CARR government because it will be the last beforenext year's state election.

AAP RTV tnf/ge

KEYWORD: BUDGET (SYDNEY)