New figures show the State Government is struggling to rein in its spending, with expenses and debt both blowing out.

The government's quarterly results for the three months to September have been released.

It recorded a deficit of almost $350million, compared with a $70million surplus for the same period last year.

Higher wages in the education and health sectors have been blamed for a seven per cent increase in expenses.

In three months, state debt has blown out by more than $1billion and is now just under $20billion.

The Treasurer Troy Buswell said the figures highlighted the ongoing challenges facing the Government.

He said spending would continue to be reassessed and that the introduction of a new wages policy will also help contain costs.

GST revenue is down $80million compared with the same time last year.