Hon Troy Buswell BEc MLA

Hon Troy Buswell BEc MLA

Former Treasurer; Minister for Transport

    September quarterly results released

    29/11/2013 12:00 AM
     
    • General Government sector recorded operating deficit of $343million in the September 2013 quarter
    • Expense growth was 7.4% - lower than the 8.4% full-year projection
    • State Government operating in tight financial circumstances and needs to continue to reform its business model
    • GST revenue continues to decline, down $83million on the same time last year

    The Western Australian Quarterly Financial Results Report for the three months to September 30, 2013 was released today.

     

    Treasurer Troy Buswell said the first quarter results highlighted the ongoing challenges facing the State’s finances.

     

    “The State is facing constrained revenue growth and extremely strong demand for Government services and infrastructure,” Mr Buswell said.

     

    “Our expenditure growth is continuing to outpace revenue growth, and we will continue to reform how we do business as a Government.

     

    “WA, like the other Australian States, only has limited options to increase our revenue base, so we are reassessing Government spending, together with introducing a new wages policy and public sector reform.”

     

    The general Government sector recorded an operating deficit of $343million for the three months to September 30, 2013.

     

    “This outcome is due to a range of issues, in particular the later issuance of this year’s land tax assessments,” the Treasurer said.

     

    Taxation collections were lower than the same quarter last year (down $374million), mainly due to the later issuing of land tax assessments following changes announced in the 2013- 14 State Budget.

     

    The State also continues to experience a decline in GST revenue which is down $83million compared with the same time last year.

     

    Revenue for the first three months of 2013-14 totalled $6.4billion, up $52million on the same period last year.

     

    The increase is largely driven by strong mining royalty income (up $417million), primarily as a result of higher iron ore volumes and the previously announced increase in the royalty rate applying to iron ore ‘fines’ production.

     

    Expenses for the first three months of 2013-14 totalled $6.8billion, up $465million (or 7.4 per cent) on the same period last year.

     

    “This result reflects higher salaries costs in the key service delivery areas of health, education and law and order, higher operating costs across the general Government sector, as well as the impact of the Government’s payroll tax relief measures for small businesses,” Mr Buswell said.

     

    Total public sector net debt increased by $1.2billion during the first three months of 2013-14, to stand at $19.4billion as at September 30, 2013. The increase in net debt supports the State’s significant infrastructure investment program (which is projected to be $7.5billion for the full year in 2013-14).

     

    The September 2013 report is available from the Department of Treasury website at http://www.treasury.wa.gov.au

     

           Fact File

    • Total public sector net debt was $19.4billion at September 30, 2013, consistent with the $21.9billion forecast for June 30, 2014
    • Infrastructure spending by the total public sector for the first three months of 2013-14 totalled $1.4billion or 18.7% of the $7.5billion program for 2013-14

    Treasurer’s office - 6552 6400