The NT's debt is approaching $14b, the highest per capita in AustraliaBy Jack HislopTopic:Budget3h ago3 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.It leaves the NT with the highest net debt per capita in the nation by far, coming in at almost $48,000 per person for the 2025-26 financial year.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 to more than $12 billion in 2025-2026.By 2027-2028, the government predicts a $17 million surplus for its day-to-day operational spending, but when infrastructure spends are taken into account, an overall $879 million deficit is forecast.By 2028-29, the net debt is forecast to hit almost $14 billion.'Law and order' prioritisedNT 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.Total infrastructure will cost $4.34 billion in 2025-26, with more than $2 billion of that going towards transport infrastructure.Crime, economy the centre of NT chief minister's 'year of action'Photo shows NT Chief Minister Lia Finocchiaro sitting inside a room and looking serious.As Lia Finocchiaro heads into her first full year as the NT's chief minister, she's promised "the end of this year will look very different to now".The government will spend $830 million on housing, $685 million on "economic affairs" and $270 million on "public order and safety" infrastructure.The Corrections Department will receive a $60 million increase to its budget, as the territory's prisoner population soars.The domestic, family and sexual violence sector will also receive $16 million, rising to $36 million from 2026-27.About $8 million will also be spent over the next two financial years to develop health IT systems, including the troubled Acacia project.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 release of the 2025 NT budget revealed that the territory's net debt to revenue ratio sits at 116 per cent. (ABC News: Michael Franchi)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.Expected $1 billion revenue increaseCompared with this financial year, revenue is expected to increase by $1 billion in 2025-26, reaching a total of more than $10 billion.That is mainly due to an increase in Commonwealth grants, including for education, community safety, health and housing.GST revenue from the Commonwealth is also expected to increase from almost $4.3 billion this financial year, to almost $4.6 billion in 2025-26.By 2029, the territory's GST revenue is projected to reach $5.2 billion. Jurisdictions like the Northern Territory receive a larger piece of the national GST revenue pie because it has been assessed to have the highest level of population need and the lowest revenue-raising ability.Live MomentLook back at how ABC readers and other Australians responded to this live
moment.1h agoTue 13 May 2025 at 2:49amBudget 'lays the foundations' to rebuild the NT, treasurer saysThe treasurer has wrapped by saying the budget is designed to address the government's three key commitments of "reducing crime, rebuilding the economy and restoring [the territory] lifestyle"."The CLP has a proud legacy of building the territory, and today we lay the foundations to rebuild it once again. "The Finocchiaro-CLP government has the passion, the discipline, the determination to do the hard work, to fix Labor's failures, to restore confidence and deliver the territory's future.This is where we'll leave today's live coverage. Thanks for staying with us.ReactReactCopy link1h agoTue 13 May 2025 at 2:39amFunding for livability in Alice SpringsFor Alice Springs, the government is committing $168.7 million "to bring back livability, pride and community safety".That includes:$123.5 million for the Aboriginal and Torres Strait Islander Art Gallery.$14.1 million for a multisports precinct in Gillen.$8.9 million for a new multicultural centre.$450,000 for free pool access at the Alice Springs Aquatic & Leisure Centre over summer weekends. ReactReactCopy link2h 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 linkShow morePosted 3h ago3 hours agoTue 13 May 2025 at 12:48am, updated 58m ago58 minutes agoTue 13 May 2025 at 3:38amShare optionsCopy linkFacebookX (formerly Twitter) News in LanguageListen to the news in Warlpiri, Yolngu Matha and KriolListenTop Stories'We should all share responsibility': Sussan Ley says of Liberals' election resultLIVEPhoto shows Susan Ley talks while standing behind a lectern. Behind her is an Australian flag.Sussan Ley becomes first woman to lead Liberal PartyTopic:ElectionsPhoto shows Sussan Ley smiles as she walks down a corridor.No matter how he spins it, this is a major capitulation from TrumpAnalysis by Carrington ClarkePhoto shows A close up of Donald Trump's face as he looks over his shoulder with a casual expression.Why the Reserve Bank is wary of rocketing real estate pricesIAnalysis by Ian VerrenderPhoto shows A man walks past two terrace housesGirl in 24/7 care 'so far gone' she may die from sexual exploitationTopic:Child AbusePhoto shows A woman rushing in a hospital corridor.Related storiesNT treasurer spends week before first budget at fishing compTopic:BudgetPhoto shows Man drives boat on river with fishing rods above head 'It would cripple the territory': NT government to scrap $15bn debt ceilingTopic:EconomyPhoto shows The exterior of the Northern Territory's Parliament House building. Already facing Australia's highest net debt per capita, the NT's financial hole may still deepenTopic:Government DebtPhoto shows Budget blues graphicRelated topicsAlice SpringsBudgetDarwinGovernment DebtNTState and Territory GovernmentTop Stories'We should all share responsibility': Sussan Ley says of Liberals' election resultTopic:Government and PoliticsPhoto shows Susan Ley talks while standing behind a lectern. Behind her is an Australian flag.Sussan Ley becomes first woman to lead Liberal PartyTopic:ElectionsNo matter how he spins it, this is a major capitulation from TrumpAnalysis by Carrington ClarkeWhy the Reserve Bank is wary of rocketing real estate pricesIAnalysis by Ian VerrenderGirl in 24/7 care 'so far gone' she may die from sexual exploitationTopic:Child AbuseJust InNeighbours describe bloody scene after unit block stabbingTopic:Stabbings11m ago11 minutes agoTue 13 May 2025 at 4:26amDeadly mushrooms seen near Erin Patterson's town months before lunch, court hearsTopic:Law, Crime and Justice18m ago18 minutes agoTue 13 May 2025 at 4:19amDo you really need a credit card before applying for a home loan? Topic:Explainer21m ago21 minutes agoTue 13 May 2025 at 4:15amAlan Jones evidence 'contradictory' to indecent assault claims, court toldTopic:Courts13m ago13 minutes agoTue 13 May 2025 at 4:23amMore Just InBack to top