NSW budget needs to be sustainable: Baird NSW Treasurer Mike Baird says he'll be delivering a responsible state budget that's capable of absorbing any future economic shocks. But he's warned the government will have to make tough decisions to achieve this, although he didn't outline what form they might take. Mr Baird says his primary focus is ensuring the state is in a sustainable position when he hands down his third budget on June 18. The NSW treasurer says he's committed to delivering a surplus next month but on Wednesday he warned the budget bottom line had been hit by a further reduction in GST revenue in the federal budget of $860 million. "That is not exciting news for a treasurer," Mr Baird said in his opening address to the Institute of Chartered Accountants NSW Business Forum. In a business context, if you face that kind of a writedown obviously there are actions you are going to have to take. The latest GST offering follows last year's $5.2 billion writedown. "We undoubtedly go into this budget with the sense there is a reduction, yet again, in revenues," Mr Baird said. So obviously there are actions we are going to have to take. Mr Baird said the latest economic update, to be released on Wednesday, showed there was weaker confidence across the economy and a softening in revenues in recent months. "We have to be prepared and ultimately any responsible budget has to be able to absorb economic shocks and that's what we are on a journey towards," he added. Mr Baird also used the conference to outline changes to accounting standards, to be used for the first time in the upcoming budget. Earnings on the state's superannuation assets will now be calculated using the commonwealth 10-year bond rate rather than a market-based forecast. The change is being introduced by all the states and the commonwealth as a result of international accounting standard changes and doesn't affect the underlying financial position of the state. "It does not affect our funding position, our cash result, our debt position, our overall balance sheet, or our credit worthiness," Mr Baird said.