New South Wales Premier Nathan Rees says there is a $1 billion shortfall in the State Government's revenue.
Treasury officials informed the new Premier of the shortfall during Cabinet's first meeting this morning.
Mr Rees says he was told of the shortfall by treasury officials this morning at the cabinet's first meeting.
The Government's June Budget Estimates forecast a small surplus of $268 million for this financial year.
Mr Rees says he does not know why the estimates were wrong.
"There's no question that the estimates require adjustment," he said.
"I don't have the time nor the inclination at this stage to examine why we've got those estimates wrong. The simple fact of the matter is we've got them wrong. I don't have the luxury of examining how that occurred."
