The Treasury’s 2020-21 Annual Report on State Finances has revealed that the general Government sector returned an operating surplus of $5.8 billion in 2020-21, $200 million better off than the $5.6 billion surplus estimated in the 2021-22 Budget.
According to Treasury the result largely reflected the audited accounting treatment of non-cash costs for two significant native title settlements finalised in 2020-21.
“Infrastructure investment totalled $5.8 billion in 2020-21, the highest level of infrastructure spending since 2013-14,” the Treasury said.
“The higher expenditure reflects additional investment to support job creation and stimulate the economy through the COVID-19 pandemic.”
It said the total public sector net debt at 30 June totalled $33.5 billion, down $2 billion from 30 June, 2020.
“It is the second consecutive year of declining net debt levels following annual increases over the preceding decade,” the Treasury said.
“Net debt is more than $10 billion lower than projected when the Government came to office,” it said.
Treasurer Mark McGowan said the State’s financial position was strong and on a sustainable footing, despite the global pandemic.
“Our financial position highlights our safe and strong management of COVID-19, and has delivered the best economic and financial outcomes in Australia — and possibly the world,” Mr McGowan said.
“While this is a record operating surplus, it is important to remember that the State’s revenue base is highly volatile, as evidenced by the recent sharp fall in iron ore prices,” he said.
