WA quarterly finances reflect iron slump

The West Australian budget appears on track for an "unavoidable" full year budget deficit as the ongoing slump in iron ore prices trims government revenue.

A day after Premier Colin Barnett conceded a deficit could not be avoided, Treasurer Mike Nahan released the September quarter financial report showing an operating deficit of $347 million for the period.

That compares with a deficit of $343 million for the same period last year, although the state government still managed to achieve a surplus of $183 million for the full 2013-14 financial year.

But Mr Barnett has flagged a grim mid-year review, which will be handed down next month.

He said on Wednesday that the state's finances were "not pretty" and foreshadowed higher fees and charges for households.

General government sector revenue for the September quarter fell 1.4 per cent to $6.4 billion, reflecting lower royalty income and the state's shrinking GST share.

Mr Nahan said the continuing fall in the iron ore price, driven by surging supply and weak demand, would dent general government revenue in coming quarters.

Iron ore prices have hit a fresh five-year low, falling below $US70 a tonne.