NT Government debt to hit $8.2 billion by July next year as GST revenue loss hits $609 million
DEBT in the Northern Territory is set to surge past $8 billion by the end of this financial year, surpassing what the government expected debt to be in 2022/23.
Northern Territory
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DEBT in the Northern Territory is set to surge past $8 billion by the end of this financial year, surpassing what the government expected debt to be in 2022/23 before the pandemic.
The Northern Territory’s coronavirus financial report will also reveal a GST black hole of $649 million across 2019/20 and 2020/21, far higher than the estimate made by economists last week, in light of the Federal Government’s budget update, of $505 million.
Net debt will soar to an estimated $8.24 billion by the end of 2020/21, with a debt to revenue ratio of 134 per cent.
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This surpasses the forward estimates laid out in the government’s budget mid-year review, which expected net debt to hit $6.8 billion in 2020/21 and up to $8.3 billion in 2022/23.
Pre-pandemic forecasts expected the NT’s net debt to revenue ratio to hit 120 per cent in 2022/23.
The fall in GST revenue, coupled with a drop in the NT’s own source revenue through tax and mining, will result in a $924 million drop in revenue in 2020/21.
But the government will still pump cash into the local economy, announcing a suite of stimulus measures that include $20 million for a new $10,000 dollar-for-dollar “business rebound and adaptation” grant program to support the rebound and adaptation of any eligible Territory business affected by the economic impact and a further $10 million in support grants for any not-for-profit and community organisations that missed out during the last round of COVID-19.
The government will also review frozen government charges, including power and water, at each budget to “help keep the cost of living down” for Territorians.
Originally published as NT Government debt to hit $8.2 billion by July next year as GST revenue loss hits $609 million