Gov't records a $0.2 million surplus in Consolidated Fund

10/9/97

Premier Richard Court says the final Consolidated Fund results for the 1996-97 financial year have reinforced the Coalition's reputation for sound financial management.

Mr Court, speaking in State Parliament today, said that despite a significant reduction in Commonwealth funds during 1996-97, the Government had recorded a $0.2 million surplus in the Consolidated Fund.

When the Budget was handed down, a balanced result had been predicted. However, this was followed by a post-Budget cut of $59.8 million by the Commonwealth to the State's General Revenue Grants.

"The small surplus in the Consolidated Fund for the 1996-97 budgetary year was achieved in the face of cuts by the Commonwealth through keeping tight controls on expenditure and the co-operation of budget sector agencies," the Premier said.

"However, we face an even more difficult task in the current financial year with a real reduction in revenue, including a further decline in Commonwealth grants."

Mr Court said the improvement in the final budget position for 1996-97 reflected an increase in revenue of $61.9 million offset by an increase in expenditure of $61.7 million.

The increase in expenditure included additional spending by the Department of Transport and higher than budgeted superannuation payments. The increased revenue was largely attributable to changed accounting arrangements for the Department of Transport, higher collections of taxation receipts and increase in interest earnings.

The Premier said the Coalition's commitment to the sound management of the State's finances was in stark contrast to the Labor years, when the Government racked up unacceptable levels of State debt.

"We have the runs on the board and this has been recognised by the independent credit rating agency, Moodys, which has restored the State's Triple-A credit rating after it was lost during the WA Inc years," he said.

Mr Court said that while the State faced a difficult budgetary year in 1997-98, the economic outlook for the State remained strong.

"Business confidence is the strongest in the nation and the continuing high levels of investment will mean continued strong economic growth and more jobs for Western Australians," he said.

Media contact: Casey Cahill (08) 9222 9475