Investing in our future: strong financial performance

16/5/02
The Western Australian Government today moved to consolidate its strong financial performance by projecting a Budget surplus in 2002-03 of $119.1million and cutting Government spending in real terms.
Treasurer Eric Ripper said the Government made no apology for delivering a financially disciplined Budget, because it was the only way to pay for big increases in health, education and police spending and invest in vital capital works.
Mr Ripper said sustainable finances were necessary for Labor to meet its long-term economic, social and environmental goals.
The Government's $3,100million investment in capital works projects around the State and massive $2,200million investment in education, science and training were twin planks in a strategy to support long-term economic growth in WA.
"This Budget is about investing in the long-term health of the WA economy and ensuring we make maximum use of the innate skills and ideas of our citizens, so they can play a part in the economic life of the State," the Treasurer said.
He said that for the second year in a row the Government aimed to meet its tough, self-imposed financial management targets.
It had also adopted a plan to keep State debt at manageable levels. In 2002-03, relative to the size of the State economy, debt would be seven per cent, shrinking to 6.1 per cent by 2005-06.
"WA has major development needs and will always have to borrow to pay for these projects," Mr Ripper said.
"Like a home mortgage, the important thing is making sure we can meet the repayments.
"That's why we have Budget surpluses and tight financial control."
Key financial features of the Budget were:

• economic growth of 3.75 per cent;

• lowest spending growth in eight years of 1.8 per cent (real decrease of 0.4 per cent)

• a surplus of $118.6million in 2001-02 and $119.1million in 2002-03;

• $3,100million in investment in roads, rail, ports, water and energy infrastructure; and

• revenue growth of 1.8 per cent, less than the rate of inflation, despite new revenue measures.

"It is a sustainable Budget which is built on a foundation of tight financial management," Mr Ripper said.
"This Government will not be living off the proceeds of asset sales, as did our predecessors.
"Western Australians have made it abundantly clear that jobs, good quality health care, high standards of education and community safety are the bread and butter issues for them. We will continue meeting these priorities with our financial management plan."
Mr Ripper said the WA Government invested $11billion a year delivering services for 1.9million Western Australians.
"The challenge is to find a more efficient way of delivering better quality services, and to scrutinise spending priorities of every agency," he said.
"Immediately after the Budget, the Government will set up a rolling functional review of Government agencies to ensure taxpayers are getting value for their investment."
Key facts:

Treasurer's office: 9222 8788