WA budget deficit a real possibility: Premier
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The Premier Colin Barnett says a budget deficit may be on the cards for WA.
Western Australia's Premier Colin Barnett says there is a real possibility the state's budget could slide into deficit.
Earlier this month, Mr Barnett made a commitment to running budget surpluses over the next four years.
But he has pointed to falling property tax revenue as having a major effect on the budget's bottom line.
Mr Barnett says it is a problem all Australian governments are struggling with.
"Whether it be commonwealth or state budgets, the deficit is driven more by falling revenue than by rising expenditure," he said.
"At a state level, property tax income is falling away very sharply, that's true in Western Australia, it's true in other states."
"I don't want to see, for example, Western Australia go into deficit, but that is a real possibility if our revenues continue to decline."
The State Opposition has attacked Mr Barnett's admission of a possible budget deficit, describing it as both surprising and disappointing.
The Opposition's Treasury spokesman Ben Wyatt says it is clear the state's finances have been over extended by the Royalties for Regions scheme.
"It's based on an agreement whose economic parameters are still yet unknown and neither Brendan Grylls nor Colin Barnett have been able to answer these questions in parliament," he said.
"I'm surprised and somewhat disappointed the Premier would be flagging deficits at this stage.
"State Governments don't have the capacity to handle deficits that Federal Governments do."
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