Continuing on the state government's theme of spending Western Australia's wealth wisely today to safeguard the future, the Treasurer Eric Ripper today delivered a 'steady as she goes' state budget.
Continuing on the state government's theme of spending Western Australia's wealth wisely today to safeguard the future, the Treasurer Eric Ripper today delivered a 'steady as she goes' state budget.
Proclaiming that his sixth budget was 'not just a budget for today but a budget for tomorrow', Mr Ripper forecast a surplus of $1.2 billion for 2006-07, down from the record 2005-06 figure of $1.9 billion, for the state's economy which is worth $123 billion.
The state will commit all of its surplus to repay debt, with the lion's share going to pay for the new MetroRail project ($1.3 billion), and to fund infrastructure.
The MetroRail project has drawn much fire due to widely publicised cost overruns, and the Treasurer was at pains to point out that in committing funds to the project it was delivering a state-of-the-art rail system fully owned by the people of Western Australia.
On the economic front, gross state product is forecast to rise to 5.25 per cent in 2006-07, up from the previous year's 4.75 per cent.
Employment growth is forecast at two percent, wages growth 4.25 per cent against a CPI of three per cent.
Net debt to revenue ratio has been maintained at under 47 per cent, helping to ensure the state maintains it triple A credit rating.
The government will commit $5.2 billion to capital works infrastructure in 2006-07, as part of $18.1 billion in infrastructure spending over the next four years.
It will spend $633 million on electricity, $620 million on water and $475 million on roads.
Perennial problem areas, health and police will receive $278 million and $234 million respectively. $313 million will be spent on education.
The health system will get 200 extra nurses and an additional $10 million for elective surgery, and there will be 90 new police in 2006-07.
$66 million will be spent to address skills shortages and there is funding for an extra 88 teachers.
Household fees and charges have received minor changes, with compulsory third party insurance down 10 per cent, Transperth fares up 10 cents and water costs increasing around 36 cents a week for the average family.
The treasurer also flagged structural reform to the WA economy, with a focus on energy, water and liquor licencing, as well as a commitment to public sector reform, focusing on 'smarter buying' and shared services in government.
Innovation and science was also reaffirmed as a priority, with $18 million to be spent in 2006-07, largely in biotechnology and IT, to help give the state some resilience to a future down turn in resources.
