Western Australia's budget surplus has reached a record $6 billion despite a fall in mining royalty revenue and infrastructure cost pressures.
Treasury figures released on Wednesday revealed a $344 million boost to the state's bottom line since the budget was delivered in May.
Revenue was down $232 million over the same period, with a fall in projected iron ore royalty income and Commonwealth grant delays offsetting higher tax receipts.
But spending fell by $576 million, mainly due to project delays linked to tight labour market conditions and supply chain disruptions.
The delays had impacted residential construction, social housing maintenance work and disaster recovery programs, the annual report on state finances said.
Infrastructure spending climbed to $7.2 billion, with higher steel and concrete costs driving up the expense of major road upgrades.
The budget improvement comes amid a continuing standoff between the state government and unions over public servant wages.
Premier Mark McGowan on Wednesday reiterated that the government would not improve its latest pay offer, which is set to cost taxpayers more than $3 billion.
Nurses are among the workers who have refused to accept the sweetened deal, which would provide wage increases of between three and six per cent over two years.
The premier said his government was using its financial strength responsibly, including reducing net debt by $4.3 billion since the previous year.
"The state's debt is now $14.5 billion lower than expected when we came to government," he said.
"Reducing debt cuts the amount of interest we pay, which is important in the current environment, and provides financial capacity to respond to future challenges and for future generations."
Opposition treasury spokesman Steve Thomas said the McGowan government was "rolling in cash" and should be doing more to reduce cost of living pressures.
"There are plenty of options for the premier to use another massive surplus to help people. The only one he can't do is to hoard the money for himself and his political future," Dr Thomas said.
The report also highlights a $7.2 million increase in the delivery of services by the State Solicitor's Office related to the defence of lawsuits against the state by Clive Palmer and other parties.
Mr Palmer sued WA's premier for defamation in 2020 and has been ordered to pay the majority of the costs associated with the trial.
The extent of the costs facing WA taxpayers from the battle, which included a cross-claim launched by Mr McGowan, has not yet been revealed.
