Softening house prices and the drought have seen the state’s forecast surplus for this financial year drop below expectation.

The last financial snapshot before the election has put the surplus for this year at $1.1 billion, down about $300 million on the budget forecast.

$2.5 billion worth of stamp duty has been written down for the next four years, as a result of the weaker property market.

However, there has been better than expected revenue from other sources such as payroll tax.

NSW Treasurer Dominic Perrottet tells Michael McLaren he’s “very happy” with the numbers.

“Our strong financial management has been the hallmark of this government.”

But the Opposition is criticising the government for selling off assets to fund its projects.

The state Treasurer says they’re using the money to invest in the future.

“I don’t think you’ll find a government that’s building three metro lines, five motorways, three light rail projects, an airport as well as schools and hospitals.

“We are really ensuring that we’re building the New South Wales for tomorrow, but at the same time, delivering for today.”

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