The Barnett government's first budget will contain aggressive savings measures totalling $7.6 billion over four years, in a move that appears likely to preserve Western Australia's AAA credit rating in the short term.
However, The Australian Financial Review reports that WA's net debt is set to double to almost $20 billion within four years as the state's fiscal position worsens from a forecast surplus of $400 million next year to a "small" surplus in 2010-11 and deficits in both 2011-12 and 2012-13.
Treasurer Troy Buswell confirmed that the savings measures in the budget next Thursday would include cuts to both recurrent and capital spending, and would come on top of the government's 3 per cent efficiency drive.
Of the $7.6 billion in identified savings, about $1 billion over four years would be from cuts to the public sector recommended by the government's razor gang known as the Economic Audit Committee.
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