GST hikes 'unpopular' but necessary: Baird

NSW Premier Mike Baird admits increasing the GST might be "unpopular" but insists it is necessary to fund the health system.

"You don't do this because you want to do this, you do this because you need to," Mr Baird told Ten's The Project on Monday.

He says those on lower incomes could be looked after with compensation, while the hike would also allow income and corporate tax cuts to get the economy going.