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Western Australia Budget Deficit Shows Boom Turning to Bust

Updated on

The state at the forefront of Australia’s biggest resources boom since the 1850s gold rush forecast a worsening budget deficit next year as plunging commodity prices hit revenue.

Western Australia’s government said its net operating deficit for the year ending June 30, 2016 will double to A$2.71 billion ($2.2 billion), from a A$1.29 billion gap in 2014-15, which was its first shortfall in 15 years. Economic growth is forecast to slow to 2 percent in the next fiscal year, the lowest rate since 1990-91, while net debt will peak at A$36.3 billion in June 2018.