WA's deficit higher than anticipated

Western Australia's deficit will be "substantially higher" than forecast in the May budget according to treasurer Mike Nahan, who says the state must prepare to weather the storm.

Dr Nahan discussed plans to steer WA out of economic trouble with federal treasurer Scott Morrison last week in Sydney, but said it would not come in the form of a bailout.

"No handout, no rescue, no bailout, we did discuss some arrangements that I'd rather keep in the file if you wish, that they are considering to assist us in getting a fair share of the GST," he said.

Dr Nahan said WA was facing a revenue issue of "sizeable proportions", but ruled out an increase in taxes.