Budget blowout in 17 NT Government departments: Ministers, department heads overspend millions of your money

SEVENTEEN government departments spent millions of dollars over their budgets last year, despite the Chief Minister’s warnings that agency heads would face disciplinary action for blowouts

Treasurer Nicole Manison ... her Annual Financial Report shows 17 government departments exceeded their budgets last financial year

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SEVENTEEN government departments ended up millions of dollars over their allocated budgets last financial year, despite the Chief Minister’s strong warnings that agency heads would face disciplinary action for budget blowouts.

Treasurer Nicole Manison tabled her department’s long-awaited Annual Financial Report for 2018-2019 in parliament, which shows 17 government departments/agencies exceeded their original allocated budgets last financial year. It also revealed the Government spent $167 million on policy changes between May and June.

The Department of Local Government, Housing and Community Development recorded the largest budget variation, spending $150 million over their $506 million budget, which was put down to the Government bringing in an extra $100 million in public housing stimulus.

In its 2018-19 budget, the Gunner Government set aside $1.2 billion for health, but the department was over by $58 million, due to spending $60 million on “interim budget pressure support”.

It marks the eighth time in the past nine years where the NT Health Department has blown its allocated budget.

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Former West Australian under-treasurer John Langoulant’s review of the Territory’s finances found that in order to get the NT’s debt under control, a cultural change away from the notion that budgets were “nothing more than an estimate that can be broken” was needed.

At the time Chief Minister Michael Gunner pledged to take disciplinary action against department heads who come in over budget and now says he will begin cracking down this financial year.

“This report is for the last financial year, 2018-19, and predates the final Langoulant report, which was delivered towards in April,” he said.

“Looking forward, we will be holding CEOs and departments to account, as per the recommendations of the Langoulant review.”

The report also found the Department of the Chief Minister blew their $76.3 million budget by $9 million largely due to costs of implementing the Boundless Possible masterbrand.

The Department of Infrastructure, Planning and Logistics was $123 million over their budget after they spent an extra $85 million on infrastructure projects.

The Department of the Attorney-General and Justice was also $26 million over, which was in part blamed on a “base budget adjustment”.

NT Police, Fire and Emergency Services was $29 million over their $430 million budget, which the report said was largely due to revisions made with NT Remote Aboriginal Investment funding.

Decisions to fund projects like the Bruce Munro Tropical Light event and Arafura Games also meant the Tourism Department spent $3 million over their budget.