The state government has recorded a $778 million operating deficit for the September quarter, a turnaround on the $220 million surplus result for the same time last year.
"The September quarter report shows similar trends to those in the July and August monthly reports, particularly the impact of the Federal Government stimulus spending and wages," Mr Buswell said.
"They show that revenue for the first three months of this year was lower than the first three months in each of the previous three years.
"These figures are another reminder that the improvement in the economy will take time to flow through to the State's bottom line.
"Revenue declined marginally during the first three months of the year, reflecting the subdued trend in tax collections that has been apparent for the last 12 months, the impact of softer commodity prices and WA's smaller share of national GST collections.
"At the same time our spending is at record levels, mainly due to the Federal Government's spending on stimulus initiatives in WA and the impact of the timing of some big Enterprise Bargaining Agreements."
The September report shows that, relative to the same period last year:
- revenue declined by 0.2 per cent
- recurrent spending grew by 22.6 per cent with an underlying rate of 12.5 per cent.
"The headline measure of expense growth is heavily distorted by extraordinary items and timing issues this year," the Treasurer said.
"If we strip out spending by the Federal Government and other unusual items, expenses grew by 12.5 per cent during the September quarter.
"This spending is mainly for items in the 2009 10 State Budget, such as rising wage rates, which are sensitive to timing in the quarterly results, and the impact of the voluntary severance program."
Mr Buswell said WA was yet to receive funds for some Commonwealth spending, such as the First Home Owners Boost which was paid to the State in arrears.
"Nevertheless, while these results are understandable, the State Government remains determined to manage finances in a prudent manner."
The impact of the September 2009 quarterly results will be factored into the revised full year projections to be released in the 2009 10 mid year review, due out by December 31, 2009.
