The strength of Western Australia's economy has again been confirmed with yesterday's release of the December 2005 Quarterly Financial Results report.
Treasurer Eric Ripper said the report showed prudent economic management had ensured that the State's finances were in great shape.
"WA's surpluses are being used to build 39 schools, 24 police stations and 31 hospitals and clinics," Mr Ripper said.
"The surpluses are a vital source of funding for our massive $18.2billion capital works program and they are also enabling the State to pay off record levels of debt."
The Treasurer said the operating surplus for the first six months of 2005-06 was $1.04billion, compared to $851million for the same period a year earlier.
In the first six months of 2005-06, revenue grew by 9.0 per cent (or $651million) compared to the same period the previous year. Commonwealth grants were up $267million, taxation revenue was up $364million and royalty income was up $182million.
"The strength of the economy also gives us the capacity to deliver tax relief in the May Budget," Mr Ripper said.
"The tax relief will be in addition to the $2.4billion worth of tax cuts and family concessions the Government has announced during the past two years.
"But it must be balanced against the need to provide services and infrastructure, while at the same time keeping debt to a minimum."
The Treasurer said while the Government was on track to deliver a significant surplus for
2005-06, caution should be exercised in extrapolating the likely outcome for the year on the basis of the December quarterly result.
"The public sector typically performs more strongly in the first half of the year with a number of significant revenue events such as land tax assessments occurring during that period," he said.
"However, spending will catch up as the year progresses and June 30 approaches."
