WA Budget Briefing Note 2018-19

It has been eight months since the last WA State Budget. While the outlook for the WA economy has undoubtedly improved during this period, WA Treasury has presented a notably rosier view of the outlook for the economy and public finances than the one presented in September 2017.

Highlights

• Better than expected revenue and controlled expenditure growth has reduced the operating deficit in 2017-18 to half the size forecast in the Mid-Year Review 
• This Budget continues the tightening of the collective public sector belt, forecasting annual average spending growth of just 1.2% over the forward estimates
• Achieving these spending targets largely relies on restraint in WA Health and the Department of Education, which account for almost half of all General Government spending 
• Failure to achieve spending restraint across these agency clusters could wreak serious havoc on State finances
• On the upside, WA can expect an extra $2.9bn in GST revenue over the four years to 2021-22
• Forecasts aside, the State Government has done well in managing expenditure growth over the past year but continue to face a difficult Budget task.

Published: May 2018

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The WA Economic Outlook is a summary of the Deloitte Access Economics Business Outlook publication with a specific focus on the Western Australian economy.

Read our previous editions

WA Economic Outlook - April 2018

WA Economic Outlook - December 2017

WA Budget Briefing Note 2017-18 - September 2017

WA Economic Outlook - June 2017

WA Economic Outlook - March 2017