Rises in stamp duty on real estate purchases and general insurance as well as increasing rates for sewerage, water and public transport have boosted the government's coffers allowing it to crow about its third successive surplus budget.

However, the increase in revenue has enabled the state to maintain its international credit rating, something that, Tim Shanahan, chief executive of the Chamber of Minerals and Energy, sees as an icon issue for the resources sector.

"CME recognises the government's economic progress in achieving a healthy budget surplus of $178 million up from an initial $119 million estimated in 2002-2003, whilst retaining its AAA credit rating.

"The resources sector relies on the government to maintain positive economic credentials so that WA maintains its competitive edge as an investment destination with a sound sovereign risk profile. It is important that the industry must be able to compete in the world market place."

According to Shanahan the budget did point out the importance of the resources sector to the state as most of the tax increases will be used to offset the loss of royalties from oil sales, usually around $1 billion.

However, the oil royalties, lauded in the press just last week as a great cash cow for the state, are now likely to cop the brunt of public resentment over the tax increases.

Another issue that was not addressed was the government's report into declining exploration and ways to increase expenditure. The recently completed report by the member for Eyre John Bowler, did not get a look in yesterday's budget although Shanahan said the surplus is a positive sign for investment in the area.

"We were looking for a mention of the report and we are disappointed that it didn't get factored into this budget, but the surplus has been set aside for state expenditure and this raises hope for a future look at the issue."

Other more cynical observers said it was just as well the State maintained its economic credentials when it obviously had the regulatory approvals processes of a Third World country, referring to the WA Gas Regulator and the Epic Energy pipeline tariff debacle.