2024 NT pre-election economic update reveals stable, sluggish outlook as parties warn of policy costs

Both major parties are taking aim at the other’s track record of money management, as new budget data reveals a stable but sluggish Territory economy.

Chief Minister Eva Lawler and Opposition Leader Lia Finocchiaro.

Both major parties are taking aim at the other’s track record of money management, as new budget data reveals a stable but sluggish Territory economy.

The pre-election fiscal outlook was released on Friday, highlighting discrepancies between May’s budget and where the Territory economy currently sits.

While remaining firmly in the red, the 2023-2024 operating balance improved by $30m, and debt reduced by $400m to $10.8bn.

Chief Minister Eva Lawler. Picture: Pema Tamang Pakhrin

Fiscal balance was up by $191m since May’s figures, but is expected to drop again by $161m this year.

Forward estimates still have the budget returning to surplus in the next financial year, however the estimated surplus for 2026-27 has been cut by $61m due to expected falls in mining royalty revenue.

Earlier this week Moody’s confirmed the NT remains at a AA3 credit rating, the lowest band that still indicates a high quality rating carrying very low risk.

“Whoever is governing after August 24 has a very clear position of where the Territory budget is right now, the economic indicators are consistent,” Chief Minister and Treasurer Eva Lawler said.

Costings for both Labor and the CLP’s election promises will be released two days before the Saturday 24 election.

Ms Lawler panned the CLP’s promised reforms to payroll tax, arguing it would “guarantee” job cuts to pay for the $52m policy.

Her messaging echoes a negative ad campaign being rolled out by Labor this weekend, warning 86 per cent of companies set to benefit from the CLP policy are based interstate or overseas.

A screenshot from Labor's new negative ad campaign against the CLP's payroll tax policy. Pic: NT Labor.

Territory Labor’s recent pledges will also hit the budget books, including $350m to fully fund public schools, $570 extra for police, and $180m for domestic violence.

Ms Lawler said the difference was that Labor’s approach focused on growing surplus rather than cutting spending to crucial services.

“We know that Lia and the CLP can’t be trusted to deliver critical services like health and education because they are more interested in looking after their mates in big business,” she said.

Leader of the Opposition Lia Finocchiaro. Picture: Pema Tamang Pakhrin

“This reckless $52m tax cut for big business will guarantee that Territory workers will be sacked under the CLP – the only questions are, how many and who?”

Opposition Leader Lia Finocchiaro accused Labor of running a scare campaign instead of defending their economic record because “they don’t have a record to stand on”.

“The CLP is really focused on growing the Territory’s economy, because there are so many areas across the Territory that have been let down by Labor, with an $11bn debt and nothing to show for it,” she said.

“Territorians are really concerned about Labor’s budget blowouts and pet projects.

“We’ve been really clear that now is not the time for austerity measures, but it is the time for responsible spending.

“We’ve been very clear that we must spend taxpayers dollars responsibly in the areas that people want them to be spent; and that’s in reducing crime, rebuilding our economy and restoring our lifestyle.”

Originally published as 2024 NT pre-election economic update reveals stable, sluggish outlook as parties warn of policy costs