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Western Australian Budget analysis 2022-23

12 May 2022

Western Australian Premier Mark McGowan delivered his second state budget as Treasurer on Thursday 12 May 2022.

The Western Australian government’s extremely healthy financial position can create a platform for investment in growth and also an opportunity for reform.

The 2022-23 WA Budget predicts a sizeable net operating surplus of $5.7 billion for the current financial year – more than double that predicted in the 2021-22 Budget – with further, but smaller, surpluses expected to occur in each year of the forward estimates period to 2026. 

State government net debt is projected to reach a modest peak in 2024-25 of just under 10 percent of gross state product (GSP) and to then decline.

At the same time, the Budget notes the economic risks that exist in the form of the evolution of COVID-19 pandemic (particularly in China), the impact of the Ukrainian conflict on global trade and the upward trajectory of global consumer prices and interest rates.

With these risks in mind, the WA government has allocated more than $1.3 billion to economic diversification projects for the tourism, education, agriculture and business services sectors, among others. 

For a full copy of KPMG’s executive summary and analysis of the Western Australian 2022-23 Budget announcement, please download our report.

Victorian Budget analysis 2022-23

3 May 2022

The Victorian election-year state budget was handed down by Treasurer Tim Pallas on Tuesday 3 May 2022.

The 2022-23 budget includes significant funding for Victoria’s health sector following two years of the COVID-19 pandemic. This sets health as the centrepiece for the government’s  platform as it heads into an election later this year.

The Victorian Government’s budget for 2022-23 forecasts a net operating deficit of $17.6 billion this financial year. Net debt is projected to be $101.9 billion currently, rising to $167.5 billion by 2025-26.

As a percentage of gross state product (GSP), net debt is forecast to reach 19.8 percent this financial year and 26.5 percent in 2025-26.

The commitment of over $12 billion in health spending is focused on health infrastructure and supporting recovery of the sector that bore the brunt of the pandemic.

This year’s budget has allocated significant spending towards the ongoing COVID-19 pandemic response, with $4.2 billion being provided to increase hospital capacity, purchasing and distributing rapid antigen tests and vaccines.

For a full copy of KPMG’s executive summary and analysis of the Victorian 2022-23 Budget announcement, please download our report.

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