The state government says its operating surplus for financial year 2010-11 was $820 million higher than expected, allowing it to push more money into its Perth Stadium and new children’s hospital projects.
Treasurer Christian Porter said today’s release of its 2010-11 annual report on state finances showed the government recorded a surplus of $1.6 billion, driven by substantial increases in revenue and spending from FY2010 being put off until this financial year.
Mr Porter said revenue was also $145million higher than expected.
Iron ore royalties and North West Shelf grants were up $101million, due to higher prices and production volumes, while transfer duty revenue was up $59million, mainly as a result of timing changes in the Duties Act.
The Treasurer said $70 million of the surplus would be transferred to the $1.18 billion children’s hospital project, while $100 million would be set aside for the stadium’s construction.
“While the surplus was larger than expected this was largely because of restraining wasteful expenditure and the roll-over timeframes for some expenses which did not occur in 2010-11 but will occur in 2011-12,” Mr Porter said in a statement.
“General government expenses grew by only 5.2 per cent in 2010-11 - the lowest rate of growth since 2003-04. This was $675million lower than the recent Budget estimate.
“General government sector salaries (which make up 40 per cent of total expenses) grew by only 6.6 per cent in 2010-11 - the lowest rate in nine years.
“This government has reined in costs through voluntary separations, a ceiling on public sector staff numbers, and the public sector wages policy.”