Debt to stay steady in WA mid-year review

WA Treasurer Ben Wyatt predicts the mid-year budget review will show only "slight changes" with a small increase in the deficit for the 2017/18 financial year.

Western Australia's budget deficit is predicted to remain steady according to Treasurer Ben Wyatt as he prepares to deliver the state's mid-year economic review.

His comments come as the McGowan government announced widely criticised cuts to education last week worth $64 million, axing the School of the Air, 170 jobs and slashing funding for gifted and talented entry programs.

Mr Wyatt said there would be "no dramatic change" to the 2017/18 budget deficit but predicted it would be slightly higher than the September budget estimate of $2.3 billion.

WA's total net debt is predicted to hit $43 billion by 2020/21.

"Basically, the pattern is still the same," he told The Sunday Times.

He said there were "small changes" such as the sale of Westralia Square for $300 million by the WA Insurance Commission, which may make forward projections slightly lower.

Mr Wyatt said the government would keep to its promise not to sell Western Power, adding the state could see off everything it owned and still not pay down its debt.

Former Premier Colin Barnett told reporters on Friday there was "no way" Mr Wyatt would be able to return the budget to surplus without an increase to WA's GST share.

And Mr Wyatt seems to agree.

"You are never going to get it down to zero, not while I'm treasurer."

Opposition Leader Mike Nahan has been critical of the government over its priorities and again called for it to redirect funding from election promises to frontline services.

"We need a new prison, but they are prioritising other things that are not needed now, and they are cutting frontline services," he told reporters on Sunday.

"Last week education, week before mental health, and now undergoing corrective services. Their priorities are wrong and they have to stop blaming the previous government."

The treasurer will hand down the mid-year review on Wednesday.


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Source: AAP


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