July 13, 2026 — 5:00am
The Minns government will halve spending on health infrastructure as a percentage of the state’s economic output until the end of the decade, with education capital expenditure also taking a hit as Treasurer Daniel Mookhey grapples with rising debt servicing costs.
The fall in spending is part of the Minns government’s stated strategy to pare back the state’s $30 billion infrastructure program in 2026-27, shifting focus away from significant capital costs towards efficiency and maintenance of completed works.
But the decision to consolidate spending in the perennially under pressure health and education portfolios raises questions about the state government’s capacity to handle demand for critical infrastructure in an era of elevated inflation and steady population growth.
Analysis of this year’s state budget by e61 Institute, a non-partisan economic research centre, reveals health and education infrastructure spending will decline as a proportion of the state’s annual economic output (called gross state product or GSP) over successive years, with the former falling to the lowest level since before 2018.
