Eyes on partnership funding in fed budget

While the WA government is delighted with its $499 million federal funding windfall, it doesn't want to see more cuts to National Partnerships funding.

It's no secret which wish the West Australian government will be granted in next week's federal budget.

While WA's recent call to change the GST carve up was resoundingly rejected at COAG, Premier Colin Barnett is this week claiming, with some delight, a victory in the wake of his "little trip to Canberra".

To be sure, he's still holding out hope the other states and territories can be talked into backing a 50 cents in the dollar GST distribution "floor".

What he's so chuffed about, though, is Prime Minister Tony Abbott's promise on Wednesday of $499 million in commonwealth infrastructure funding to compensate for WA's dwindling GST share.

It's money which will go a long way to reducing the state's 2014/15 deficit, and in Mr Barnett's words, that's "a pretty damn good" outcome.

The cash hasn't made it into next week's state budget, to be delivered two days after the federal figures are revealed, but will be seen in audited accounts in September.

For the still-growing but no longer boom state, those millions will go on roads, roads and more roads.

Even so, it's no guarantee the WA government will have nothing to complain about when the federal government throws open its books, especially if Treasurer Joe Hockey cuts National Partnerships funding like last year in the face of a large deficit.

Such cuts were the trigger for the state government controversially announcing plans to close "unviable" remote indigenous communities and angering seniors by halving the cost of living rebate.


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Source: AAP


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