Quarterly report confirms State's finances in great shape

29/05/06
Treasurer Eric Ripper today released the March Quarterly Financial Results Report, saying prudent economic management had ensured that the State's finances remained in great shape.
The report by the Department of Treasury and Finance shows that the operating surplus for the nine months to March 31 was $1.5billion, compared with $939million for the same period a year earlier.
Mr Ripper said the 2005-06 surplus would be used to pay off the new MetroRail project 30 years ahead of schedule, saving WA approximately $75million a year in interest payments.
"Western Australians will soon be the proud owners of the nation's newest and best urban rail network - paid for in full by the State Budget surplus," the Treasurer said.
Mr Ripper said the strength of the WA economy meant that revenue continued to grow during the March quarter.
In the first nine months of 2005-06, revenue grew by 12.2 per cent. compared with the same period the previous year. Commonwealth grants were up $504million, stamp duties and payroll tax revenue was up $612million and royalty income was up $293million.
However, the Treasurer warned that many of the revenue gains flowing from the boom would be lost over time, with significant reductions in Commonwealth funding expected in future years.
"A significant factor in framing our decisions for the longer term is the delayed impact of the Grants Commission process on our share of Commonwealth GST funding," he said.
"The current boom is expected to cost the State almost $700million in GST grants by 2009-10 - a significant constraint on our future finances."
Copies of the March Quarterly Financial Results Report are available at http://www.dtf.wa.gov.au
Treasurer's office: 9222 8788