Western Australia Treasurer Troy Buswell

December Quarterly released

Victor P Taffa

Quarterly financial results for December 2009 showed an operating surplus for the month of $611 Million, Treasurer Troy Buswell said today.

This followed a $100 Million surplus recorded in November and included the receipt of Federal Government stimulus funding, reimbursing the State for earlier spending.

“The general government sector operating deficit has narrowed to $259 Million for the six months ended December 31, 2009, down significantly on the $778 Million deficit recorded for the September 2009 Quarter.” Mr Buswell said.

GST grants and North-West Shelf petroleum grants were down a combined $329 Million although this was offset by higher tied grants and Federal stimulus funding.

Taxation revenue grew $68 Million, primarily reflecting the recovering property market.

The Treasurer said a 13.3 % increase in expenses in the six months to December 31, 2009 had been largely driven by extraordinary items totalling $542 Million.

General Government expenditure increased by $1,221Million during the six month period to December 2009 relative to the same period last year.

However, $451 Million of this increase related to stimulus spending and other Federal Government grants that pass through the State. A further $91 Million reflected last year’s decision to adopt transition arrangements to cost reflective electricity tariffs.

“Excluding extraordinary items, expenses to December 2009 increased by 7.4 % showing that our focus on reining in spending is bearing fruit.” Mr Buswell said.

Many of the extraordinary costs shown in the report were factored into the mid-year review estimates released on December 17, 2009 and the results are consistent with the mid-year review forecast of an operating surplus for 2009-10 that will be lower than that anticipated at budget-time in May last year.

Revised estimates for the year will be reflected in the 2010-11Budget to be presented on May 20, 2010.

The December 2009 report is available from http://www.dtf.wa.gov.au/