The sale of Government assets including the Kwinana Bulk Terminal, the Utah Point bulk facility and the Perth Market Authority could net up to $6 billion for WA coffers, Premier Colin Barnett has said.

Announcing the first stage of the Government's long-awaited asset sales program, Mr Barnett said details of the first land sales would be announced in coming weeks.

He said the first tranche would involve the sale of the Kwinana and Utah Point facilities, as well as the Perth Market Authority, and could raise up to $2 billion.

In total, asset sales could realise $6 billion over the next three years, Mr Barnett said.

The Perth Market Authority operates the Canning Vale Markets, which distributes fresh produce around the state, while Utah Point at Port Hedland port handles iron ore exports for smaller mining companies.

Kwinana Bulk Terminal is operated by Fremantle Ports and includes a two-berth jetty for loading and unloading of products such as mineral sands, iron ore, bauxite and coal.

Treasurer Mike Nahan said asset sales by Government in the eastern states had been lucrative, but he would not sell at any price.

"If we don't get adequate value for those, then we will reconsider," he said.

"This is not a fire sale. We don't have to sell these assets. I expect to get very good prices for them."

Hospital sites likely to be sold

Mr Barnett said the land on which Princess Margaret Hospital was situated was among several likely land sales.

"There's several hospital sites that will come up, there's also a lot of what's described in govt as lazy land - land owned publicly that is really ripe for development," the Premier said.

"We're keen to see inner-city land sold and encourage higher density development."

He confirmed the Government was still considering the sale of the TAB, but it was "complicated" and no final decision had been taken.

Since ratings agency Standard and Poor's stripped the state of its prized AAA credit rating last year, the Government has pitched asset sales as a way to pay down climbing debt.

This week a second agency, Moody's, also downgraded its credit rating for WA, citing a weak response to growing debt.

State debt now stands at $22 billion, up from about $3 billion when the Government took office in 2008.

Debt under control, says Premier

Mr Barnett said today the asset sales would enable debt to remain in the "low $20 billions".

"We don't want to see it rise much further," he said.

"The expenditure in our capital works program in future years won't be as great as it has been in past years.

"Debt is in control, although we need to act to make sure it doesn't grow too much."

This year's state budget saw the Government forecast a slim surplus of $175 million for the next financial year - expected to plummet to just $5 million the following year.

However, Treasurer Mike Nahan said earlier this week falling iron ore prices would likely punch a $1 billion black hole in the budget.

State debt is expected to climb to more than $29 billion dollars by 2018.

Mr Barnett said next year's budget would be tough, but blamed the Federal Government for not addressing the state's declining share of GST revenues..

"It's going to be very tough next year - nothing to do with debt levels, totally due to the GST issue - and we are getting to the point now where the loss of $3.7 billion a year straight out this state to other states is starting to get to core areas of service such as education and health," he said.

"That's why we are getting increasingly angry about it and intolerant of the shifting to one side of this issue by the Federal Government."

GST not to blame: Opposition

But the State Opposition said Mr Barnett was responsible for the state's financial position, not the Federal Government.

"This is not an issue around GST, it's not an issue around revenue, it's an issue around expenditure," shadow treasurer Ben Wyatt said.

"The fact that he continues to blame the GST for the loss of our AAA credit rating shows that he fundamentally misunderstands the state of the budget."

Mr Wyatt said the asset sales were a short-term solution that would not restore the state's AAA rating.

"This is clearly a panicked response to what has been a scathing assessment by Moody's over his own financial management credentials," he said.