The Western Australia Budget delivered a $1.6 billion surplus, largely driven by a strong resources sector, according to APPEA.
This is the second consecutive year WA has seen a Budget surplus, reaching $5.7 billion in 2021-22.
APPEA WA director Claire Wilkinson said that the production of gas led to flow-on effects which benefitted the mining and minerals process and generated electricity for homes, hospitals, schools and businesses.
She said that the mining and minerals processing industries that supported jobs and contributed royalties which added to the Budget surplus were enabled by the provision of affordable and available energy in WA.
“Gas has enabled the WA mining sector to grow, employ more people, and pay more royalties to Government,” Ms Wilkinson said.
“It’s good to see the State Government utilise the benefits of our natural resources to provide important cost of living relief to families and increase investment in essential services such as hospitals and schools.”
According to the State Budget, WA’s economy and finances were leading the nation because of a mix of the State’s handling of the pandemic as well as the uninterrupted operation of the resources sector.
It forecast royalties to reach more than $7 billion over 2022-23 because of elevated commodity prices, which would account for 18 per cent of total government revenue, second only to taxation.
Premier Mark McGowan said the surplus meant the Government could focus on diversifying the economy.
“The 2022-23 State Budget delivers another massive $1.3 billion investment in economic diversification initiatives and infrastructure that restart industries impacted by the necessary closure of international borders over the past two years of the pandemic,” Mr McGowan said.
“These investments further advance the Government’s Diversify WA strategy and WA Jobs Plan, which put WA in a strong position sets our State up for the future.”