WA announces short-term spending cuts
The Western Australian Government has announced $92 million worth of short-term belt-tightening measures it says are crucial to protecting the State’s economy.
State Treasurer Troy Buswell said that the measures are designed to ensure that the state lives within its means as it grapples with a number of cost pressures.
“Western Australia’s finances face unprecedented pressure brought on by a number of factors including falling GST income, volatile royalty income, and lower payroll and land tax. WA also faces significant challenges with record demand for health and education services as more than 1,000 people move to WA each week,” Mr Buswell said.
“These new savings measures show the Government is prepared to make the tough decisions necessary to manage the State’s finances responsibly, while ensuring front line services to the public are not affected.”
The savings measures will take effect immediately and include:
- a temporary freeze on all Government advertising and promotions until June 30, 2013
- a temporary freeze on all general Government expenditure on the procurement of non essential goods and services until June 30, 2013 (consumables such as stationery, use of consultants, non-essential travel)
- a re-cashflow of payments to local governments to 2013-14.
“We are in a very tough financial situation. These measures are designed to reduce our expenses to produce immediate savings but our focus is not restricted to short-term belt-tightening,” Mr Buswell concluded.