NT Government debt to hit $8.2 billion by July next year as GST revenue loss hits $609 million

DEBT in the Northern Territory is set to surge past $8 billion by the end of this financial year, surpassing what the government expected debt to be in 2022/23.

DEBT in the Northern Territory is set to surge past $8 billion by the end of this financial year, surpassing what the government expected debt to be in 2022/23 before the pandemic.

The Northern Territory’s coronavirus financial report will also reveal a GST black hole of $649 million across 2019/20 and 2020/21, far higher than the estimate made by economists last week, in light of the Federal Government’s budget update, of $505 million.

Net debt will soar to an estimated $8.24 billion by the end of 2020/21, with a debt to revenue ratio of 134 per cent.

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This surpasses the forward estimates laid out in the government’s budget mid-year review, which expected net debt to hit $6.8 billion in 2020/21 and up to $8.3 billion in 2022/23.

Pre-pandemic forecasts expected the NT’s net debt to revenue ratio to hit 120 per cent in 2022/23.

The fall in GST revenue, coupled with a drop in the NT’s own source revenue through tax and mining, will result in a $924 million drop in revenue in 2020/21.

But the government will still pump cash into the local economy, announcing a suite of stimulus measures that include $20 million for a new $10,000 dollar-for-dollar “business rebound and adaptation” grant program to support the rebound and adaptation of any eligible Territory business affected by the economic impact and a further $10 million in support grants for any not-for-profit and community organisations that missed out during the last round of COVID-19.

The government will also review frozen government charges, including power and water, at each budget to “help keep the cost of living down” for Territorians.