The Western Australian economy is performing better than expected at the time of the 2020-21 Budget. Together with an elevated iron ore price, the improved economic conditions have flowed through to a stronger revenue outlook. As a result, general government operating surplus projections have been revised up across the forward estimates period since the 2020-21 Budget. This includes a forecast surplus of $2.2 billion for 2020-21, up from the Budget estimate of $1.2 billion. Western Australia is the only State that is forecasting an operating surplus in each year of the forward estimates period.
The higher than expected operating surpluses have allowed the Government to set aside $1.787 billion in a Special Purpose Account for a new Women and Babies Hospital.