NT Government banks in on cheap interest rates and borrows $600 million

THE NT Government borrowed $600 million in the past two months because interest rates were down and money was cheap.

Treasurer Nicole Manison said the cash wasn’t to cover the Government’s costs of dealing with the coronavirus crisis. Picture: Che Chorley

THE NT Government borrowed $600 million in the past two months because interest rates were down and money was cheap.

Ahead of yesterday’s public accounts committee hearing, Treasurer Nicole Manison said the cash wasn’t to cover the Government’s costs of dealing with the coronavirus crisis but was rather standard government business and would be applied to the 2020-21 borrowing program.

The committee heard Victoria had done the same, borrowing $13 million.

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“NT Treasury Corporation has a yearly borrowing program, the program for this financial year was completed back in February, and is contributing to funding our response to the coronavirus crisis,” she said.

“Measures taken by the Reserve Bank to restore confidence in the Australian debt capital markets have allowed all governments to start prefunding their borrowing programs for the next financial year.” It was also revealed the Treasurer’s $300 million pot of emergency contingency cash, which is also borrowed money, had not yet been touched.

Ms Manison said the Government would, as much as it could, try not to dip into that pot of cash though it remained available depending on how each department’s budget was faring as it dealt with the coronavirus fallout. The NT Government expects to forgo $109 million in revenue due to freezing fees and charges; payroll tax deferral and waivers; and electricity, water and sewage discounts.

It was also confirmed, through a written question, that NT Health had spent $13.4 million from the beginning of March to the end of May to deal with the pandemic.

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According to the NT Government, the majority of the expenses “has been met by redirecting existing resources to COVID-19 activities”.

NT’s debt is expected to be north of $7 billion, with the Government reiterating during the hearing yesterday that the fiscal outlook would be released on July 29.