NT records eye-watering $1bn deficit last financial year, Deputy Chief Minister Nicole Manison reveals

The Deputy Chief Minister has revealed how much the NT was in deficit last financial year but says its not all bad news.

THE Northern Territory government recorded an eye-­watering deficit of more than $1bn last financial year, Deputy Chief Minister Nicole Manison has revealed.

However, in a major speech to parliament on Tuesday night, Ms Manison said the $1.13bn shortfall in the 2020-21 financial year was actually $1.3bn less than the gloomy forecasts made during the pandemic.

Meanwhile, net debt in the NT’s public sector hit $6.76bn, which was lower than forecast.

The better-than-expected economic turnaround was largely due to the impact of the pandemic being smaller than first feared, mainly due to shorter lockdowns and fewer outbreaks in the Territory. The Territory also ­received more GST revenue from the commonwealth than expected, softening the budget predictions made in November last year.

The result is a relief to the government, which in the 2021-22 Budget implemented a number of measures to rein in ballooning debt.

This included a debt ceiling and a threat to fire departmental chief executives if they ran over budget.

Ms Manison, tabling the Treasurer’s annual financial report, said the result was partly due to avoiding longer lockdowns like those seen in Sydney and Melbourne.

“The better-than-expected budget outcome is a result of many factors – including stronger-than-expected GST revenue – reflecting the broader national recovery,” she said.

“We are controlling the virus. That means we can grow the economy. And that means we can repair the budget over the long-term.”

Delays to major infrastructure projects, which Ms Manison blamed on border closures and lockdowns, meant some spending was ­delayed until 2021-22.

“While this has resulted in a better budget bottom line for 2020-21, it will have a modest impact on the bottom line for the 2021-22 – which will be reflected in the upcoming mid-year report,” she said.

She said more money than expected was ploughed into dealing with the pandemic, to pay for quarantine facilities, border patrols, hospital equipment, Covid testing and vaccination.

The result comes despite CommSec’s most recent State of the States report – released on Monday – ranking the NT last among states and terri­tories for overall economic performance.

The report also found Darwin had the highest rate of ­inflation of any Australian capital city, rising by 6 per cent. It found the NT had performed strongly in terms of relative population growth, but was weak in new dwelling starts, equipment investment and retail sales.

The NT’s construction sector was down 69 per cent on its decade average.