The Government Financial Responsibility Act 2000 requires the Under Treasurer to release an update on the State’s economic and fiscal outlook within 10 days of the Legislative Assembly being dissolved ahead of a State election. The Assembly was dissolved on 30 January 2017 and the PFPS was released on 9 February 2017.The report provides Treasury’s latest assessment of the outlook for the State’s finances and economy at the beginning of the election period.The economic forecasts contained in the PFPS are largely consistent with those in the 2016-17 Mid-year Review. The main difference is that the Western Australian economy (as measured by Gross State Product) is now forecast to grow by 0.5% in 2016-17, down from growth of 1% forecast in the Mid-year Review.The general government operating deficits expected for 2016-17 and 2017-18 have narrowed since the Mid-year Review, primarily reflecting the impact of higher iron ore prices. However, the fiscal outlook over the forward estimates period (to 2019-20) has deteriorated since the Mid-year Review, with:
Further detail is provided in the PFPS, which together with the Under Treasurer’s media statement accompanying release of the report, is available through the links at the bottom of this news item.
During the election period, Treasury provides an election commitment costing service to the major political parties. Treasury’s costings, which are relative to the PFPS estimates, are available on the Treasury website.