It’s simply due to the lack of skill, ability and real willingness to fix the root causes of the problems, namely a bloated public service and bad planning. I love to see how they will get out of this mess in 2 years without first making things a lot worse by raising taxes. Business in NSW will dry up like a flower being hit with a blowtorch. So, revenues will fall even more and the state finances will end up in a much worse state Rasing taxes is never the right option unless business is spared. In that case, ordinary people will have to be slugged with much higher rates and other taxes. This will be painful but may not be the only option. A better one is cutting costs. To cut costs, first they need to get rid of a huge chunk of the public service. Otherwise, Rudd will have to step in and bail out the state.
