THE NSW Treasurer, Mike Baird, has joined the Premier, Barry O'Farrell, in calling for a debate about whether the rate of the GST should be increased in light of plummeting revenue to the states.

After a week in which Mr O'Farrell was criticised for cuts in education and health, which he said were needed because of falling GST revenue, yesterday he said ''everything should be on the table'' when examining alternative revenue sources.

Illustration: Rocco Fazzari

''It's a lack of confidence at the national economic level that's caused the reduction in GST receipts, that's caused the flow-on consequences for the states,'' he said. ''I think we should have a discussion about whether getting rid of other state taxes can be exchanged for adjusting the GST in a way that seeks to address current problems that states are facing in revenue.''

The Prime Minister, Julia Gillard, ruled out increasing the GST, while the federal Treasurer, Wayne Swan, went on the attack.