NT Budget 2023-24 passes parliament with government forecast to balance the books
Treasurer Eva Lawler says budget 2023 shows the Territory is on track to reach its goal of a $40 billion economy by 2030, with ‘many exciting major projects to come over the next few years’.
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
The Territory government’s 2023 budget has officially passed into law after it was handed down by Treasurer Eva Lawler in May.
Ms Lawler said the 2023-24 budget invested “across the length and breadth of the Territory” to create a diverse economy with more opportunities.
“The Territory Labor government is planning for the future of the Territory, we are creating more jobs in more sectors for more locals,” she said.
“We are moving forward strongly as a government to reach our goal of a $40 billion economy by 2030, with many exciting major projects to come over the next few years.”
On Thursday, Chief Minister Natasha Fyles said the budget would create jobs and boost health and education services while creating a sustainable environment, strengthening initiatives to address social issues and reducing cost of living pressures for Territorians.
The future-focused budget marks the first to project a fiscal surplus since 2016, predicted to be in the order of $67m in the next three years.
It is expected play a key role in meeting the Territory government’s goal of bringing the budget to balance by 2028-29.
Budget 2023 also forecasts a net operating surplus from 2024-25 onwards.
The Territory’s eye-watering debt is projected to peak at $9.98bn in the 2025-26 budget, before dropping to $9.86bn the following year.
Included in the budget books is a record $4bn infrastructure spend, with more than half of this year’s capital spend to go towards roads, bridges and other transport projects.
The second biggest spend category is housing at about 20 per cent.
In March, Ms Lawler said the 2023-24 budget was one that “looks to the future”.
“The Territory budget remains on track and will see us return to surplus in the very near future and ahead of schedule,” she said.
“Our strategic location and abundance of natural resources make us a competitive place to invest.
“We are ensuring we capitalise on every opportunity to grow a stronger, more prosperous Territory.”
It comes after a bombshell fortnight of estimates hearings that featured budget blowouts, shortfalls and clashes.
Opposition leader Lia Finocchiaro said the past fortnight had been an “excellent opportunity for the CLP to prosecute the government”.
She said estimates hearings uncovered “many tricky issues”.
“When we revealed that it is the police budget that is going to have to suffer the blow of the Chalker payout everyday Territorians shook their heads,” she said.
“We’ve also uncovered enormous budget blowouts and total incompetence, like the 1998 design of Tiger Brennan which is now $100m more, like the fact that just last year this government wiped $68m off the slate of people who hadn’t paid their rent to the Territory.”
Blackouts not ruled out as NT’s gas ‘emergency’ bill crests $1bn
The NT’s Power and Water corporation is facing a ballooning debt of $1.185bn as it continues to lean on an “emergency gas arrangement” to meet the Territory’s energy needs.
Chief financial officer Graciano Chatikobo told Thursday’s estimates hearings he expected that figure to continue climbing, with no debt ceiling and no plans to repay the funds.
“I don’t think we have to,” he said.
But Power and Water board chairman Peter Wilson said if the company’s assets grew in proportion with its debts, it would “maintain the financial stability to meet the various needs of the parliament, the treasurer, and the market”.
“Generally, I’d want to see our assets and debt grow because that’s a sign of a growing Territory economy, rather than a mature economy where you don’t borrow anymore because it’s all stationary,” he said.
It comes as Power and Water engages in its second legal stoush with gas supplier Eni Energy, which it claims is failing to meet the requirements of a 25-year contract it commenced more than a decade ago.
A formal dispute resolution process was launched last week after initial legal action against Eni Energy last year failed to uncover the reasons behind a purported shortage of gas in the Territory.
Acting deputy chief executive John Pease said any 25-year relationship had the potential for many disputes and the first between Power and Water and Eni Energy was concluded in the Western Australian Supreme Court.
“The question at issue in that was whether there was sufficient urgency that entitled Power and Water to have access to information,” Mr Pease said.
“The court felt that it wasn’t sufficiently urgent and dismissed the action and referred that issue to arbitration at that point in time.”
Mr Wilson said the corporation was supplementing what it claims is Eni Energy’s missing gas through an emergency gas arrangement with Inpex and is seeking a similar setup with Santos.
Mr Wilson said he was “quite confident” Territorians would not face blackouts.
“We have to navigate this dip, which we’ve been able to date,” he said.
“I’m very optimistic about the longer-term provision of gas in the Territory.”
Opposition renewables and energy spokesman Josh Burgoyne said after the hearings he was concerned the Territory was “paying twice” to keep the lights on.
“When we further question the Power and Water Corporation chair, we were led to believe that an increase in supply due to Beetaloo could fix all these issues,” he said.
“We know that there has been roadblock after roadblock put in the way of that gas supply coming online, and now it appears that we’re holding all our hopes out for that.”
Mr Burgoyne said the Beetaloo Basin could power the entire country for 200 years.
“The estimates process is meant to be a time when Territorians can get a fair and accurate assessment of the state of the Territory, and for a jurisdiction that’s economy is built on gas, questions on our energy security were left unanswered,” he said.
“What this means is that we have no idea how much we are paying for our gas upfront in the former arrangement with Eni despite this not being delivered, or how much we are paying to other providers under emergency provisions to top up our supply.”
Renewables and Energy Minister Selena Uibo was contacted for comment.
Join the conversation
‘Urgent’ calls to review Native Title
Coalition senators are expected to renew their calls to grill Aboriginal Corporations and Land Councils in the Federal parliament this week.
Read more
Named: Every winner from Hockey NT’s night of nights
Three new Hall of Fame inductees and 28 life members were among the award recipients at Hockey NT’s night of nights. See the full list of winners here.
Read more