End of year budget figures show overall improvement

29/7/94

Premier Richard Court today said that the resurgence of the Western Australian economy combined with better financial management over the past year had resulted in an overall improvement of $141.4 million in State finances for the 1993-94 financial year.

Releasing the actual end of year budget figures, Mr Court said the State ended the financial year with a deficit in the Consolidated Fund of $85.3 million - a $141.4 million improvement on the forecast Budget deficit of $226.7 million.

"The final deficit of $85.3 million was in fact even $20.1 million lower than the Government expected when we presented the Consolidated Fund estimates to Parliament on June 9 of this year," Mr Court said.

"This $20.1 million difference can be attributed to greater revenue and a minor decrease in expenditure."

The Premier said Consolidated Fund revenue for 1993-94 had totalled $6.028 billion, compared with a forecast of $5.862 billion, while expenditure had come in at $6.113 billion - just above the forecast of $6.088 billion.

The variation in expenditure was largely due to the decision to bring forward the repayment of $125 million owing on the ill-fated PICL deal. 

Mr Court said the improvement in revenue was mainly due to increased collections from stamp duties and other taxes, sparked by more buoyant economic growth in areas such as the housing sector.

"Importantly, the improvement in the State's revenue position and the hold on expenditure has been used to help reduce debt rather than embark on a spending spree, as was the practice of recent administrations," he said. 

"The Government's commitment to an attack on debt is shown by the accelerated PICL repayment and further illustrated by the example that 18 months ago, State Government debt per household was $13,000, but it is estimated that it will be just over $12,000 during the current financial year. 

"We have taken steps to arrest the growth in State net debt and what is more are now reducing it.

"Our improved position also meant that the State did not have to draw upon the total borrowings of $196.4 million planned when the 1993-94 Budget was framed."

Mr Court said that while revenue had increased, the State's position has been enhanced by the Government's policy of keeping a tight control on expenditure and ensuring more value for the taxpayer's dollar. 

"We have embarked on reforms which have resulted in greater accountability and Government departments adopting more efficient work practices and striving for quality performance," he said.

"The momentum of the last financial year will be sustained by the 1994-95 Budget, which aims to reduce debt and at the same time create jobs, encourage investment, promote economic development and provide strong support in areas such as education health and law and order.

"We intend to make the most of Western Australia's economic growth forecast of 4.75 per cent this year - but at the same time we are committed to 'tightening the belt' on Government expenditure and getting the State's finances back in order."