NT ‘not a viable fiscal unit’ even before COVID-19, says RMIT economist, taking aim at Langoulant budget repair report
THE Northern Territory is ‘not a viable fiscal unit’ even before coronavirus and the recommendations of the scathing Langoulant review don’t go far enough, a prominent economist has warned.
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THE Northern Territory is “not a viable fiscal unit” even before coronavirus and the recommendations of the scathing Langoulant review don’t go far enough, a prominent economist has warned.
RMIT-based Professor Sinclair Davidson, in an analysis of the Territory’s finances, also slammed the NT Government’s previous budget for being “overly ambitious” about how much money it would make and “overly generous” on spending.
Prof Davidson, who is a fellow at several conservative think tanks including the Institute of Public Affairs, said the fiscal situation facing the NT was “dire” even before the pandemic and the Territory’s small economy and “excessive reliance” on Commonwealth funding meant it had “few options” in pursuing budget repair.
He said there was “far too much expenditure” on promoting economic activity and tourism. “This is understandable but unaffordable,” Prof Davidson said.
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Treasurer Nicole Manison slammed this suggestion, saying the government would always reject advice that “says to make deep cuts”.
“The Territory has a long-term budget plan that is focused on growing the economy and creating jobs, not cutting jobs,” she said.
Prof Davidson suggested the government “sharpen” the recommendations of the Langoulant report by not creating the Office of Investment Attraction or a Budget Repair office and instead make it a responsibility of the Chief Minister to cut down on bureaucracy among other suggestions.
Neither the government nor the Opposition confirmed if they would consider these ideas if they deemed it better for the overall goal of budget repair.
Opposition Leader Lia Finocchiaro said Prof Davidson’s analysis was “damning but unsurprising”.
“The Gunner Government’s mishandling of the economy over nearly four years has been an absolute disgrace,” she said.
“The Chief Minister cannot blame the COVID-19 crisis for this, he must look in the mirror and blame himself.”
The NT Government is set to reveal its financial position on July 29, and it is expected debt will be north of $7 billion.
Originally published as NT ‘not a viable fiscal unit’ even before COVID-19, says RMIT economist, taking aim at Langoulant budget repair report