Territory net debt hits $5.7 billion

THE Territory’s net debt hit $5.7 billion last financial year, about $150 million less than what was previously forecast.

• The NT’s public service balloons by 3000 despite debt woes
• Revealed: The high-profile staffers leaving Gunner’s fifth floor

THE Territory’s net debt hit $5.7 billion last financial year, about $150 million less than what was previously forecast.

Chief Minister and Treasurer Michael Gunner on Thursday night tabled his Annual Financial Report, which outlines the difference between the NT Government’s 2019/20 Mid-Year Report published in November, and the actual budget figures recorded at the end of the financial year in June.

It shows net debt for the non-financial public sector hit $5.7 billion last financial year — $150 million less than the $5.9 billion forecast in the mid-year report.

While the NT’s net deficit hit $821 million — an overall improvement of $228 million between November’s forecast and the actual deficit.

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The improvement was linked to the revised timing of capital expenditure and improved operating and capital results of government-owned corporations.

But Mr Gunner has warned the coronavirus will have a huge impact on the NT’s books for this financial year, with net deficit forecast to hit $1.5 billion and net debt forecast to hit $6.8 billion in 2020/21.

“The 2020/21 Territory Budget — which will be introduced on November 10 — like the Commonwealth’s recent budget, ours will also show a big whack because of the coronavirus crisis,” he told parliament.

The report also showed that public order and safety expenditure increased by $52 million from $803 million in 2018-19 to $855 million in 2019-20, largely due to increased resourcing for border and biosecurity controls as a result of COVID-19 combined with increased costs in correctional facilities.

Housing and community amenities expenditure decreased by $115 million from $732 million in 2018-19 to $617 million in 2019-20, largely reflecting one-off capital grants under the Remote Housing Investment Package and urban public housing stimulus projects paid in 2018-19.

Health spending increased by $71 million from $1609 million in 2018-19 to $1680 million in 2019-20, largely reflecting increased public and community health costs associated with COVID-19.

Education spending increased by $65 million from $1156 million in 2018-19 to $1221 million in 2019-20, due to additional Commonwealth funding for non-government schools and contribution towards a new Darwin city education and community precinct in 2019-20.

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Social protection expenditure decreased by $38 million from $675 million in 2018-19 to $637 million in 2019-20, largely related to decreased claims within the Motor Accident Compensation Commission.

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