wa budget grim, says treasurer

WA Budget grim, says Treasurer

The State Budget has slipped into long-term structural deficit, needing urgent cuts to avoid an endless Queensland-style string of multibillion-dollar deficits and mounting debt.

Treasurer Troy Buswell described an "underlying structural Budget issue" as he announced a "fiscal action plan" yesterday aimed at short-term belt tightening and longer-term reform of public spending aimed at making the State's finances sustainable.

He denied the problems were of the Government's making. While revenue has increased 32 per cent since Labor's final full year in office, recurrent spending has increased 52 per cent on the Liberal-National Government's watch.

Mr Buswell claimed the spending increases were largely unavoidable, driven by an increasing population and demand growth in health, education and police.

While the State Budget has been delayed until August, Mr Buswell admitted yesterday stamp duty and land tax revenue would have to be written down, along with future iron ore royalty receipts.

"It is a very tough fiscal environment," Mr Buswell said.

http://au.news.yahoo.com/thewest/a/-/newshome/17088528/wa-budget-grim-says-treasurer/




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