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WHEATBELT REGION The economic and fiscal environment in Western Australia continues to be challenging. General government revenue is expected to decline for the third year in a row in 2016-17, which is unprecedented. Against this backdrop, the 2016-17 Budget takes a cautious approach to spending and keeps increases in household fees and charges as low as possible. New spending initiatives in this Budget are focused on broadening the economy and creating new job opportunities. The 2016-17 Budget includes: • initiatives to further limit the growth in spending, including the new 1.5% Public Sector Wages Policy and an extended Agency Expenditure Review program, which together will deliver estimated savings of $1.3 billion across the forward estimates period; • targeted increases in spending on priority services, including an extra $266 million (or 4.8% relative to 2015-16) for public hospital services, an increase of $81 million in recurrent spending on education (providing for a 3.3% increase in spending by schools), and an increase of $67 million on policing (5.1% increase on 2015-16); • initiatives to support industries that will underpin the State’s economic future, including additional support of $47 million over 2016-17 to 2019-20 for the State’s tourism industry and $20 million over four years to support researchers, innovators and start up businesses; and • $22.9 billion Asset Investment Program over the next four years, including $5.9 billion in 2016-17, with a major focus on transport and education infrastructure. Highlights for the Wheatbelt region Total asset investment project spend in the Wheatbelt region of $95.7 million in 2016-17 includes: • $66.5 million on maintenance and upgrades to water and wastewater infrastructure, including new storage tank facilities in Barbalin, Beverley, Cunderdin; and Wundowie; • $18 million on hospitals and health centres, including Narrogin and Merredin Hospital and cancer services in Narrogin and Northam; and $8.8 million maintenance and upgrades of power infrastructure in Merredin, Wundowie and Kellerberrin. 1