After a long drought dating back to the 2015-16 financial year, the Northern Territory’s budget has finally shifted from red to black, marking a fiscal milestone. According to the Treasurer’s Annual Financial Report (TAFR) for 2022-23, the Northern Territory is now operating with a surplus of $146 million. Not just a minor improvement, this figure is a whopping $399 million better than what was predicted in the 2022-23 Budget. The driving factors? A rise in GST collection, judicious operational spending, and enhanced revenue from the Territory’s own resources.
The TAFR also provides some further good news for the fiscal health of the Territory. The fiscal balance deficit has seen a substantial reduction, dropping by $656 million from the May 2022-23 Budget, bringing it down to $454 million. Net debt, which stood at $8 billion, also saw a marked improvement and is $713 million lower than what was originally anticipated in the 2022-23 Budget.
The government’s effort towards mending the budget can be traced back to April 2019, when it released the Fiscal Strategy Panel’s final report, titled ‘A Plan for Budget Repair’. Since then, the government has been focused on implementing its recommendations. The 2022-23 operating surplus stands as an achievement in this journey towards fiscal rectitude.
The Territory is not just doing well on the budget front, but also shows promising signs of economic growth, surpassing other Australian jurisdictions. State Final Demand in the Territory has rocketed by 16.3% since December 2019. Furthermore, its Gross State Product increased by 4.7% in the 2021-22 financial year. It’s worth noting that this was the third-strongest performance among all Australian states and territories.
The future looks optimistic, too. According to Deloitte’s recently released September 2023 Outlook, the Territory is expected to witness solid economic growth in the years running up to 2027-28. Their economists predict the Territory’s Gross State Product to grow by an average of 2.7% per annum over the five years. This is the most robust growth prediction across all Australian states and territories.
Chief Minister Natasha Fyles was elated at these developments. She noted, “The Territory economy is growing, the Budget is in a strong position, and we are working every day to build the Territory’s future.” She also stressed that achieving an operational surplus despite the challenges of recent years is a significant feat. The Chief Minister reassured that the government would continue to manage the economy in the interest of all Territorians, with a focus on job creation, essential services, and easing the cost of living.
Treasurer Eva Lawler highlighted the government’s commitment to fiscal discipline and growth. “Territory Labor is implementing its budget repair strategy, and this first operational surplus since 2015-16 is a result of strict fiscal discipline measures put in place by this government,” she said. Lawler further added that the government has set an ambitious target to swell the economy to $40 billion by 2030. “We are on track to achieve this target, and the 2022-23 TAFR shows that Territory Labor is committed to growing the Territory in a fiscally sustainable manner to benefit all Territorians,” she stated.
The Northern Territory’s economic and fiscal indicators not only point to a robust present but also promise a future that can sustain this vigour. The numbers don’t lie; the Territory is on a fiscal upswing, making it a jurisdiction to watch in the coming years. This turnaround story serves as an example of what can happen when careful planning meets disciplined execution. Here’s to the Northern Territory—may the fiscal winds continue to blow in its favour.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on Twitter | Instagram | Facebook
The Northern Territory has achieved a surplus of $146 million, a substantial improvement driven by increased GST collection, prudent spending, & resource revenue. The outlook for economic growth is promising. 📈💰👏 #TheIndianSunhttps://t.co/QX0WAB6F35
— The Indian Sun (@The_Indian_Sun) October 27, 2023
Donate To The Indian Sun
Dear Reader,The Indian Sun is an independent organisation committed to community journalism. We have, through the years, been able to reach a wide audience especially with the growth of social media, where we also have a strong presence. With platforms such as YouTube videos, we have been able to engage in different forms of storytelling. However, the past few years, like many media organisations around the world, it has not been an easy path. We have a greater challenge. We believe community journalism is very important for a multicultural country like Australia. We’re not able to do everything, but we aim for some of the most interesting stories and journalism of quality. We call upon readers like you to support us and make any contribution. Do make a DONATION NOW so we can continue with the volume and quality journalism that we are able to practice.
Thank you for your support.
Best wishes,
Team The Indian Sun
