NT government records operating surplus but debt continues to grow
The NT government has recorded its first operating surplus in seven years, but the big $40bn economy goal remains on shaky grounds with debt still rising.
Northern Territory
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For the first time in seven years the Territory budget is in an operating surplus, but a closer look at the details reveals three-quarters of the economy relies on federal funding.
Treasurer Eva Lawler said there was an operational surplus of $146m for the 2022-23 financial year – an improvement of almost $400m from what was forecast.
However 76 per cent of the Territory’s operating revenue comes from the commonwealth – a 2 per cent increase on the previous year.
GST revenue jumped $389m in one year while commonwealth grants increased a nudge.
Mining royalties also dropped $87m due to “reduced production” and some lower commodity prices.
But Ms Lawler said the government was still on track to achieve a $40bn economy by the decade’s end.
“We are on track to achieve this target and the 2022-23 Treasurer’s Annual Financial Report shows that Territory Labor is committed to growing the Territory in a fiscally sustainable manner to benefit all Territorians,” she said.
“The achievement of an operating surplus in 2022-23 and improvements in other fiscal aggregates are evidence that our fiscal strategy is working.”
Tabled in Thursday’s parliament sittings, the report reveals some good news with debt dropping $713m lower than forecast.
It leaves the government with $8bn owed – up from $7.64bn in the previous fiscal year – and a net debt to revenue ratio of 97 per cent.
When the budget was handed down in May it charted debt to peak in 2025-26 at almost $10bn, before heading downwards.
Chief Minister Natasha Fyles said the government was working “every day” to build the Territory’s future.
“Getting back to an operating surplus despite all the challenges of recent years is an excellent result,” she said.
“We will keep managing the economy and the Budget in the interests of all Territorians.
“That means creating more jobs, delivering the essential services Territorians rely on, and doing what we can to ease cost of living pressures.”
But earlier in the sittings week the CLP’s Namatjira MLA Bill Yan said the $40bn economy goal was a “pipedream”.
“Territorians deserve more than what Labor has dished out to them over the past seven years,” he said on Tuesday.
“We will rebuild our reputation which has, sadly, been damaged by the inaction of Labor.
“We will fix our economy by making the Territory the place to do business again.
“We will immediately cut red tape and give that commitment to Territorians, unreservedly.”
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