REVEALED: What’s in the Territory’s 2021-22 budget for you

Chief Minister Michael Gunner has revealed his second budget, containing a raft of measures to help the Territory bounce back from the COVID-19 pandemic. SEE WHAT’S IN IT FOR YOU.

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• Analysis: This will be the Gunner Government’s make-or-break budget

CHIEF Minister Michael Gunner has a tough road ahead to claw the Northern Territory out of a fiscal black hole but he’s had a helping hand from a boost in GST revenue.

The NT government on Tuesday revealed the 2021-22 budget, its second since the start of the COVID-19 pandemic.

Inside is a projected $1.36b deficit, roughly $1b better than what was predicted six months ago but still described by the Chief Minister as “eye watering”.

Departmental chiefs will be sweating as Mr Gunner threatens them with an axe if they spend too much on workers.

But on the other hand, there’s been an $185,000 boost to the Million Dollar Fish program, and tourism vouchers are back.

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In his budget speech, Mr Gunner said “our comeback has only just begun” and outlined how he reckons he’ll help the NT recover from the deepest economic shock since the Great Depression.

DEBT, DEFICIT AND THE PUBLIC SERVICE

Government net debt will hit $9bn, a billion dollars less than previously feared due to a better-than-expected economic recovery.

GST revenue will hit $3.16bn, a 9.1 per cent increase on last year’s budget, fuelled mainly by people spending more as the nation recovers from COVID-19 lockdowns.

On top of the $1.36bn deficit, there is still no projection of a budget surplus for the Territory for at least 10 years.

To control the Territory’s ballooning credit bill, Mr Gunner will impose a $15bn debt ceiling to prevent ratings agencies from downgrading the NT’s credit score (and the NT is at $10bn currently, if you exclude government assets).

In addition to a controversial wage freeze, the Chief Minister has also put departmental chief executives on notice to live within their means or face the sack.

The employee cap has been scrapped, replaced with a hard limit on employee expenses.

For instance, the Health Department will only be able to spend $1.16bn on employee wages.

Departments that overrun their staffing budget by five per cent will have their chief executives guillotined.

The NT’s economy is projected to grow 4.7 per cent in the coming financial year, buoyed by a better-than-expected rebound out of the COVID-19 pandemic.

TOURISM

The tourism and hospitality industry sectors have got their wish.

$5m will be spent on a new round of tourism vouchers, albeit much less than the $14.75m spent in 2020-21.

An additional $4m will be spent on the Roadhouses to Recovery Grants, allowing families to more easily drive across the Territory.

In his speech to the parliament, Mr Gunner also held up the upcoming BASSINTHEGRASS festival as an example of the Territory’s tourism prowess, spruiking that 8000 of the 14,000 tickets sold were to interstate visitors.

“The comeback capital is now the festival capital,” he said.

Mr Gunner said $17m would be spent over the next four years to boost events and festivals, and budget documents show $4.35m will be spent in the coming financial year.

There’s been an $185,000 boost to the Million Dollar Fish initiative, taking its budget to $1.1m.

INFRASTRUCTURE

$1.27bn in cold hard cash will be splashed on the Territory’s roads and transport.

That includes nearly $300m to improve “freight connectivity” for the Buntine Highway, Carpentaria Highway, Central Arnhem Road and various routes within the Kakadu National Park.

Another $255 million will be spent on road safety improvements, including widening stretches of the Carpentaria and Stuart highways, resurfacing Darwin thoroughfares and building a new overpass at the Tiger Brennan Drive and Berrimah Road intersection.

HEALTH AND THE PANDEMIC

The Health department will be armed with $2.1bn overall.

The NT will this year receive $247m from the federal government to operate the Howard Springs quarantine facility.

Mr Gunner has stressed on a number of occasions that the Territory isn’t trying to profit from the deal it’s struck with the Commonwealth.

The Territory government will also spend an added $20m on the “public health response” to the pandemic and another $20m on the vaccine rollout.

“While things are looking good, we take nothing for granted,” Mr Gunner said.

$31.8m will be spent continuing the expansion of the Royal Darwin Hospital’s mental health inpatient unit.

POPULATION AND PFES

As revealed by the NT News on Tuesday, $15m will be invested over the next five years to grow the Territory’s population, including 5000 homes in the new suburbs of Holtze and Kowandi.

“By boosting the number of lots in the pipeline for residential development, we can support responsible growth over the next decade and beyond, and get ahead of any growing pains,” Mr Gunner said.

$488.4m will be spent on emergency services and police.

Among major measures is $64.4m for new and upgraded youth justice centres in Darwin and Alice Springs.

$753.4m will be spent to construct new and refurbish existing housing in remote and urban areas.

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