WA’s delusional iron ore forecast sinks Budget

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By Leith van Onselen

The comedy act that was the 2014-15 Western Australian State Budget, which delusionally forecast high iron ore prices as far as the eye can see, along with surging royalty revenue (see below table and chart), has finally been exposed, with the State Government’s Mid-year Financial Projections Statement revealing a $1.6 billion downgrade in Budget revenues in 2014-15, and an unprecedented $5 billion downgrade over the forward estimates period (2014-15 to 2017-18).

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According to the Statement:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.