The New South Wales Government has announced it is still committed to its pre-budget pledge of hiring an additional 900 nurses despite growing fears of a possible $700 million budget blowout.

 

The State Government announced it will continue its $84 million spending initiative to substantially increase the number of nursing staff in the state over the 2011-12 financial year.

 

The announcement comes as the State Government unveiled a $1.08 billion health capital works plan which will see significant expansions and upgrades of the state's hospitals.

 

State Treasurer Mike Baird said the spending initiative formed part of a broader state capital works plan.

 

However, the State Opposition has warned that thousands of public sector jobs could be lost if the State Government continues with its nursing plan.

 

"If you are employing 900 extra nurses and sacking 20,000 workers from other departments, there's a net loss there of thousands and thousands and thousands of jobs," shadow treasurer Michael Daley warned.