The state government has reported a $1.7 billion budget surplus during one of the worst downturns in the country's history, helped by a $945 million boost in royalty income.
The increase in royalty income was mostly due to record iron ore prices, which averaged $US92.9 a tonne during 2019-20 - more than 25 per cent above Treasury's forecast.
But the overall result was about $920 million worse than the state government had predicted at its mid-year review, when it set its sights on a $2.6 billion surplus.
Treasurer Ben Wyatt said the state government had dramatically improved the state's financial position.
"Even though the financial impact of COVID-19 came in the final months of this report, it vindicates our efforts for budget repair and highlights the value of preparing for economic shocks," he said.
"Given the significant impact of COVID‑19, the government is now shifting its focus from reducing net debt to supporting our economy. The full impact of COVID-19 on the state's finances will take some time to be captured as the economic impacts continue to be felt and the government continues to fund the state's recovery.
"Every cent of the surplus achieved in 2019-20 has been allocated to the Asset Investment Program to fund projects that support and create local jobs. The priority in a COVID world is not driving down net debt; the priority is Western Australians' and the state's economic future. Next month's budget will contain further initiatives to support our recovery from COVID-19."
The report showed an overall reduction in government revenue in 2019-20 and an increase in recurrent spending, mostly due to the pandemic. Total public sector net debt increased to $35.4 billion at the end of FY20, up from $34.5 billion at March 31 2020.
The state government said it had spent $5.2 billion on infrastructure in 2019-20, with major investment in roads and public transport ($1.9 billion), electricity ($971 million), water ($635 million), and schools ($428 million).
