Treasurer
Media Release
Billion-dollar budget turnaround for the good of the Territory
9 November 2026
Stronger revenues have boosted the Territory’s Budget as major energy and mining investment builds economic momentum.
The 2025-26 Treasurer’s Annual Financial Report records a $234 million general government operating surplus, a $1.12 billion improvement on the previous year.
Stronger revenue helped absorb $131 million in unbudgeted disaster expenditure while spending increased on health, education and public order and safety.
The Finocchiaro CLP Government has delivered a stronger than expected Budget result, with higher GST revenue, tax collections and mining royalties boosting the bottom line as significant energy and mining investment builds momentum across the Territory economy.
The 2025-26 Treasurer’s Annual Financial Report released last month records a $234 million general government operating surplus, a $1.12 billion improvement on the previous year’s $886 million deficit.
The operating result was $499 million better than the deficit forecast in the original May 2025 Budget and $139 million above the revised estimate.
The non-financial public sector’s fiscal deficit narrowed by $1.2 billion compared with the previous year to $453 million, finishing $855 million below the original Budget forecast.
Net debt was $719 million below the original Budget estimate, while the net debt-to-revenue ratio improved from 116% to 109% compared with the previous year.
General government revenue increased by $1.377 billion compared with the previous year, while operating expenses increased by $257 million. Stronger revenue helped the Government absorb significant cost pressures while investing in frontline services.
NT Treasurer Bill Yan said the result was welcome, but the Government still had work to do to strengthen the Territory’s finances.
“Territorians elected us to rebuild the economy and restore responsibility to the Budget. That means making careful decisions about spending and keeping services running under pressure,” Mr Yan said.
“Despite national economic headwinds causing issues for other states, we have stayed focused on getting the Budget settings right and backing business. Major projects are moving ahead, bringing jobs and opportunities for Territorians.
“The $234 million operating surplus is a substantial improvement on what was forecast in the original Budget.
“Severe weather events, including cyclones and regional flooding, contributed to $131 million in unbudgeted disaster expenditure for emergency responses and repairs to housing and public assets.
“We absorbed those costs while increasing health expenditure by $99 million, education by $68 million, and public order and safety by $166 million compared with the previous year.
“Stronger revenue brings a responsibility to manage that money wisely. It is not a licence for reckless spending.”
The report confirms the Territory maintained its Aa3 credit rating with a stable outlook following Moody’s September 2026 review, meeting the Government’s credit rating target.
The Commonwealth Grants Commission’s latest assessment cited in the report, covering 2024-25, also ranked the Territory as Australia’s lowest-taxing jurisdiction. Its assessed taxation effort of 82.5% was below the state average of 100%, meeting the Government’s tax competitiveness target.
Mr Yan said recent investment figures and progress on major projects showed investment was gaining momentum.
“Business investment increased 18.7% to $1.1 billion in the June quarter 2026 compared with the previous quarter, in seasonally adjusted terms. The Territory also recorded Australia’s strongest quarterly growth in state final demand at 1.4%,” he said.
“We delivered 58 of the 70 Approvals Fast Track recommended actions in the first year. The Business Council of Australia also found the Territory had the nation’s fastest average determination times for development applications worth more than $30 million.”
“Businesses need timely decisions and clear rules. Alongside our $2.5 million payroll tax-free threshold and no land tax, faster approvals give them more reason to invest here.”
Major projects are progressing, with construction underway at Arafura’s $1.6 billion Nolans Rare Earths Project and KGL Resources having reached a final investment decision for its Jervois Copper Project.
“These projects mean jobs and contracts for Territory workers and businesses,” Mr Yan said.
“You only have to look at the huge surge of homes being built supported by our home building grants to see real confidence in the Territory’s future.
“We will keep working to grow the economy, improve services and make every taxpayer dollar count.”
The report can be found here here.
