The NSW treasurer will be delivering his fourth budget for the nation's largest state economy on Tuesday - and potentially his last, pending the outcome of the election scheduled for March.
It comes at a time of multiple economic headwinds, including rising interest rates and a stalled property market, and the fallout from the war in the Middle East putting a further brake on the already sluggish Australian economy.
While the NSW economy was expected to grow by 2.5 per cent in the coming financial year, that forecast has been downgraded to a meagre one per cent, Mr Mookhey revealed in a recent speech.
The treasurer, known for his colourful eyewear, is careful not to deliver a rose-tinted budget outlook, despite touting record investments in housing and health.
"For so long many communities, both in regional and urban NSW, have felt like they've missed out and whilst no budget solves any problem definitively, in each budget we look to make progress," he told AAP from his parliamentary quarters.
He promised regional towns can look forward to a surge in funding for essential services, especially roads.
"They're going to see us putting a serious amount of money into catching up on the basics that they've missed out on, when it comes to their schools, when it comes to their hospitals, when it comes to their roads and when it comes to what makes for good neighbourhoods."
But the treasurer has also looked to keep a tight grip on the purse strings.
NSW was due to rival Victoria as the most heavily indebted state, but the latest budget forecast has it stabilising at around $178 billion.
Planned spending in Tuesday's budget includes $10.3 billion in recurrent funding for a range of health services, $2.1 billion for maintenance of Sydney's massive train network and a $557 million energy efficiency program for low to middle income families.
"I'm unapologetic about paying our bond owners less in order to pay more in our essential services," Mr Mookhey said.Â
When asked about the budget's other side of the coin, he said revenues would also take a hit.
Two of the main sources of income are expected to plunge over the coming four years as the property market takes a dive.
Stamp duty receipts are projected to fall $5 billion in that period, while land taxes are expected to decline by about $3 billion.
Another major source of revenue is one of the most controversial: poker machines.
NSW has the highest number of poker machines per capita of any jurisdiction worldwide, at about 87,000, bringing in a predicted $3 billion in taxes by 2029.
"People accept that you can't prohibit gambling, so you should tax it," Mr Mookhey said.
The treasurer said households can depend on a government that is the "most fiscally disciplined of any Australian state or territory" to tackle the root causes of their financial challenges.
"This budget is the beginning of us arguing for why we would like to be entrusted with the responsibilities of office for a further four years (in government)," he said.
"People will see that we have a laser-like focus on helping people right now, at the same time as we confront the fundamentals of this cost of living crisis."
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