WA books $303m operating deficit in Apr

Lower Commonwealth contributions have played a large role in the state government's operating deficit of $303 million for the month of April.

Latest figures from the Department of Treasury and Finance (DTF) reveal the state's operating deficit is a $469 million turnaround from a year ago when Western Australia recorded a $166 million surplus.

It also compares with a $123 million operating surplus recorded in March 2009.

In the monthly update released yesterday, the DTF reported revenue of $1.32 billion, down 16.2 per cent or $256 million, from the same month last year.

The report said the lower revenue is attributable to lower GST grants, down $172 million, and lower capital grants and subsidies, down $136 million compared to April last year when the government received funding for the Perth to Bunbury Highway.

The downturn in Perth's property market saw taxation revenue decline by $50 million from a year ago due to lower prices and volume in the residential market.

Expenses for the month of April were 15.1 per cent higher to $1.63 billion including higher salaries costs, up $12 million from March, reflecting higher employee numbers and pay rates.

Also contributing to higher overall expenses is a $38 million increase from March in 'other services and contracts' expenses to $204 million, due mainly to higher costs on a number of projects including AK Reserve, the State Theatre Centre and the Rockingham/Kwinana hospital.