The state government has narrowed its operating deficit to $11 million in January as higher revenue offset increased expenses.
The state government has narrowed its operating deficit to $11 million in January as higher revenue offset increased expenses.
In its monthly report of general government finances, the Department of Treasury and Finance reported that the operating deficit compared to a $56 million deficit recorded in January last year.
Revenue for the month was $313 million, or 18.3 per cent, higher on last year January result $2.013 billion, reflecting higher taxation revenue on the back of a stronger property market and increased Commonwealth grants.
Expenses rose $269 million, or 15.3 per cent to $2.024 billion, mainly driven by costs associated with the start of a new school year and higher service and contracts expenses.
The department reported a cash surplus of $198 million, down slightly on the $202 million cash surplus recorded in January 2009.
For the first seven months of the 2010 financial year, the general government operating deficit reached $270 million, a turnaround on the $750 million surplus recorded for the same period the previous year.
The department said this reflected a lower rate of growth in revenue while expenses included the impact of significant extraordinary spending, including the stimulus.
Revenue in the period totalled $12.16 billion, up $470 million or 4 per cent on the previous year, while expenses reached $12.4 billion, up 13.6 per cent.
State opposition treasury spokesperson Ben Wyatt said the runway record spending by the state government will threaten WA's AAA credit rating.
"This is absolutely unprecedented continued expense growth and it will hit every Western Australian family hard," Mr Wyatt said.
"This sort of gross financial mismanagement will cost every single family as they are hit by skyrocketing bills and cuts to essential services.
"Treasurer Troy Buswell has axed millions of dollars of key election promises, presided over record expense growth during the past 18 months and is steering the State's budget into a serious deficit.
"He has been missing in action for weeks and he must be held to account for the financial fiasco unfolding before our eyes."
