No hit list on WA infrastructure: Barnett

Western Australia's premier has denied the government has a "hit list" of projects to axe in a bid to stop the state's finances slipping into the red.

The government last month detailed its plan to sell 20 land assets including hospitals, police stations and schools to reduce mounting debt.

But Colin Barnett moved to quash speculation on Tuesday that infrastructure projects would also be targeted under drastic cost-cutting measures.

Mr Barnett said the rapid fall of the iron ore price had punched a hole in the budget, but the government was concerned about day-to-day spending, not infrastructure investment.

"There's no hit list of projects," Mr Barnett told an online Q&A.

"We have a big capital works program and we are continuing it."

Treasurer Mike Nahan said the GST system was ripping money from WA as the state lost billions in iron ore royalties.

But the government would not cut back on infrastructure spending because it was the right thing to do.

Dr Nahan said the government was committed to spending $6 billon on large projects over the next four years.

"We are out there investing in the capital base of the state because it's a fast-growing state and will continue to do so and it needs it," Dr Nahan told Fairfax Radio on Tuesday.

The state government hopes to net $6 billion over three years from the asset sales.