liveLive: NT debt hits record $12b in budget prioritising law and orderBy Jack HislopTopic:Budget1h ago1 hours agoTue 13 May 2025 at 12:48amLoading...abc.net.au/news/nt-budget-2025-treasurer-bill-yan-debt-police-corrections/105280812Link copiedShareShare articleThe Northern Territory's net debt will reach more than $12 billion next financial year, with the budget forecasting a further increase to nearly $14 billion by 2029.The Country Liberal Party government's first budget has revealed a deteriorating fiscal position for the territory, which has a population of around 255,000 people.The budget shows the government will have to borrow $265 million to fund its day-to-day operations next financial year, and another $101 million in 2026-27.When infrastructure funding and the financial performance of government corporations are added to the bottom line, the government will run a fiscal balance deficit of $1.3 billion in 2025-26.Overall, the NT's net debt will rise from $10.5 billion this financial year, to more than $12 billion in 2025-26.By 2028-29, the net debt is forecast to hit almost $14 billion.Live MomentNT Treasurer Bill Yan has handed down his first budget. Here are the latest updates.5m agoTue 13 May 2025 at 2:32am$4.34 billion for capital worksMr Yan says the government is allocating $4.34 billion towards its capital works program in 2025-26.That amount includes:$289 million for the Tanami Road.$223 million for the NT's national network highway upgrades.$205 million for the Central Arnhem Road.$180 million for territory gas roads.$615 million for remote housing.ReactReactCopy link14m agoTue 13 May 2025 at 2:23amFunding to attract workers and promote tourismThe treasurer has listed a series of measures to promote job creation and private sector confidence.Those include:$120 million for training and higher education.$2 million for workforce attraction, skilled migration and international education$88.4 million for tourism promotion, including military heritage and interstate campaigns.$6.4 million for the Office of the Territory Coordinator to fast-track major projects.Introducing Australia's highest payroll taxfree threshold."At the core, this strategy is about making the territory the best place in the nation to live, work, invest and grow a business."ReactReactCopy link21m agoTue 13 May 2025 at 2:16amMore funding for courtsWith the NT's courts facing growing workloads, Mr Yan says the government will commit $78 million in additional funding to the justice system, over four years.He says this will strengthen victim support, legal aid, community courts and prosecution services.The treasurer also says the government will fast-track the processing of remand cases "to reduce backlogs and harm."ReactReactCopy link27m agoTue 13 May 2025 at 2:10amFunding for domestic violence preventionWith the NT's rate of domestic violence the highest in Australia, Mr Yan has announced measures including:$180 million over five years and $36 million a year in ongoing funding for prevention and early intervention.Funding for specialist domestic violence courts, starting in Alice Springs before expanding to more sites.New culturally safe offender programs in prisons and communities. Men's behaviour change programs in Darwin, Wadeye, Katherine and Alice Springs.ReactReactCopy link34m agoTue 13 May 2025 at 2:03am'This budget puts victims first'Tough-on-crime measures and boosting community safety have been key feature of the CLP's time in government so far, and Mr Yan says this budget reflects those focuses."This budget puts victims first.""There are more police on the beat, more beds in corrections and more resources for our courts, and a clear focus on putting victims and the community ahead of offenders."Key police and corrections funding announcements include:$608 million for police services, including remote policing and police aircraft.$16 million for upgrading critical infrastructure and technology at the NT's triple-0 call centre.$2 million for boosting emergency communication in Central Australia.$495 million for corrections, with $126 million in immediate funding, and $176 millions in ongoing funding to address rising prisoner numbers.ReactReactCopy link44m agoTue 13 May 2025 at 1:53amTreasurer outlines project cost blowoutsThe treasurer says the NT's revenue is expected to increase by $142 million this financial year, "driven by improved royalties and reforms".He says the economy has been impacted by blowouts on a series of major infrastructure projects under Labor, including the Darwin Ship Lift, Aboriginal and Torres Strait Islander Art Gallery and and State Square Art Gallery."It's devastating to think how much Territorians have missed out on by allowing these project costs and delays to run unchecked.""We have uncovered the full scale of the mess and we are now working to fix it. We have scaled back Labor's bloated, undeliverable infrastructure promises and replaced them with a realistic program."ReactReactCopy link58m agoTue 13 May 2025 at 1:39amPublic service told to find savingsEarlier this year, the CLP scrapped the NT's debt ceiling of $15 billion, saying it would otherwise be hit within the next four years. Mr Yan said if that hadn't been done, then to stay under the ceiling the government "would have had to deliver deep and damaging cuts, worth around $1.4 billion, over the period".He says instead of a debt ceiling, the CLP has introduced a five-pronged "budget repair strategy".He has also put the public service on notice."While we have removed Labor's arbitrary debt ceiling, the public sector will not have a licence to spend money."Agencies are being directed to find $20 million per year across government in operating savings, focused on reducing consultancies, travel, communications and marketing, and other discretionary spending."ReactReactCopy link1h agoTue 13 May 2025 at 1:28amNT needs to 'play to its strengths'Mr Yan says the NT needs to "play to its strengths" to boost the economy."This means prioritising sectors where the territory holds comparative advantage and has strong long-term growth projects, such as energy, defence, agriculture, mining and tourism."ReactReactCopy link1h agoTue 13 May 2025 at 1:17am'Going for growth'Mr Yan says the NT's economy has grown at a slower rate than the national average, and recorded "four separate years of economic decline".But he says there are positive signs ahead, including growing private sector confidence to invest in the NT."As of the March quarter of 2025, up to $9.3 billion worth of projects are under construction in the territory, with a further $680 million committed and a total project pipeline of 12.9 billion."Our population is now projected to grow, with 2,600 new Territorians joining us in 2025-26, and further growth forecast in each year over the forward estimates.""The territory's fundamentals are strong, and under this government we are going for growth."We want to outpace the nation and consistently grow the territory. A larger economy and population will increase scale, drive cost reductions, enhance services and improve labor flexibility, while reducing reliance on the Commonwealth government."ReactReactCopy link1h agoTue 13 May 2025 at 1:07amCall for more 'nation-building projects' from federal governmentMr Yan has issued a call for the federal government to do more than "maintain the status quo" in the territory. "Commonwealth revenue is projected to be $7.14 billion in 2025-26, and over 70 per cent of the territory's revenue comes from the Commonwealth. That is not by accident."It reflects the sheer scale of the historic backlog across infrastructure, across services and across the board left to us from the Commonwealth since self-government. "While the Commonwealth funding is vital, is it largely there to maintain the status quo."What we need from the Commonwealth is nation-building projects, taxation reform and changes to support migration."ReactReactCopy linkShow moreNT Treasurer Bill Yan said the budget "puts crime victims first, prioritises law and order and begins the long task of repairing Labor's mess".Big spends include an additional $305 million for the beleaguered Darwin ship lift project, on top of $515 million already budgeted.Public service employees the biggest budget costThe government's largest expenditure is public service employee costs, which are expected to grow by 4.9 per cent in 2025-26.Employee costs account for about 41 per cent of the government's total expenses, at around $4 billion per year.The budget shows the increase to employee costs reflect new funding to "support hospital and corrections demand pressures".The NT's 2025 budget released by Lia Finocchiaro and Bill Yan shows that the government's largest expenditure is public service employee costs. (ABC News: Dane Hirst)Interest paid on debt to reach $911 millionInterest expenses are also expected to increase across the budget cycle, with the government to pay $679 million next financial year to service its debt.That cost will rise to $911 million by 2029 as the territory's debt position deteriorates.The NT's net debt to revenue ratio now sits at 116 per cent and is expected to rise to 121 per cent in 2025-26.The ratio weighs up the debt against how much money the government has coming in.A high ratio means it is less likely a government can repay debt.The ratios in this budget are an improvement on treasury's mid-year forecast, which projected a rate of 131 per cent in 2025-26.The improvement is the result of revenue projections increasing at a greater rate than net debt.Posted 1h ago1 hours agoTue 13 May 2025 at 12:48am, updated 11m ago11 minutes agoTue 13 May 2025 at 2:26amShare optionsCopy linkFacebookX (formerly Twitter) News in LanguageListen to the news in Warlpiri, Yolngu Matha and KriolListenTop StoriesSussan Ley is the new leader of the Liberal Party, Ted O'Brien is deputy LIVEPhoto shows Susan Ley talks while standing behind a lectern. 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