WA budget to benefit from stronger revenue

West Australians should expect "no surprises" from this week's state budget, although the Labor government hasn't ruled out further tax hikes to help pay down debt and restore the bottom line.

But better-than-expected revenue from iron-ore and dividends from WA utilities, combined with a boost in federal government funding, points to a narrower budget deficit for 2017/18.

The WA budget update in December flagged a deficit of $2.6 billion for this financial year and a deficit of $915 million in 2018/19.

However, Treasurer Ben Wyatt last month told a business function this week to expect better figures when the budget is handed down on Thursday.

Last month's $3.2 billion federal government road and rail windfall is also expected to have helped the bottom line.

But Premier Mark McGowan has refused to rule out further tax increases and Mr Wyatt repeatedly said the government's purse strings will remain tight.

Hikes in household fees and charges have already been announced and WA residents can expect to be slugged an extra six per cent for water and about seven per cent for electricity.

Sales of assets such as the TAB and Landgate are unlikely to be included in the budget, ahead of the government receiving a final report from a scoping study.

And despite the boost in federal funding, the WA government still has to find $2.2 billion for its key Metronet rail project which will not be fully funded in this year's budget.

Mr McGowan has said the government will be going through its business cases and hope for further Commonwealth generosity to come.