Surging WA debt fuels credit rating fears

The West Australian opposition has accused the state government of unleashing a "$28 billion debt monster", with the latest state budget showing ballooning liabilities.

Opposition Leader Mark McGowan immediately took to social media to respond to the once-boom state's balance sheet.

He labelled the second-term Liberal government "economic vandals" for adding a projected $10 billion to the state's net debt over the five years to 2016/17.

The WA government says the debt is necessary to fund much-needed transport infrastructure projects as GST revenues dwindles.

Mr McGowan claimed the debt surge equated to $10,000 for every man, woman and child in the state.

"Only Mr Barnett could cut services, whilst at the same time increasing debt, increasing charges and increasing taxes," he told reporters.

"Mr Barnett has allowed the debt monster in WA to get out of control.

"He has no control over the finances, and no belief in the promises he made at the last election."

Unions WA secretary Meredith Hammat labelled the budget "arrogant, unfair and dumb", and bemoaned the loss of more than 1000 public sector jobs as the state government seeks to rein in costs.

"The state government is looking to pursue further contacting out and privatisation of public services that will lead to insecure jobs and cuts to community services," she said.

"The cuts in the budget mean working West Australians face higher costs of living and poorer public services such as for schools, public transport and health."

Chamber of Commerce and Industry of WA chief executive James Pearson said the state government deserved credit for "grasping the nettle" in public service reform.

But Mr Pearson complained the business community was being overtaxed, while high debt levels threatened the state's AAA credit rating.

"The government has recognised some of the challenges, but it could have gone further," he said.

"What really matters is that we retain the state's AAA credit rating."