For the first time since 2015-16 the Northern Territory’s Budget is in an operating surplus.
The result was handed down in the Treasurer’s Annual Financial Report (TAFR), which reveals an operational surplus of $146 million for the 2022-23 financial year.
This result is a $399 million improvement from the forecasts in Budget 2022-23 and has been largely driven by increased GST, management of operational expenditure and improved own source revenues.
The 2022-23 TAFR also reports the fiscal balance deficit has been substantially reduced, with a $656 million improvement from the May 2022-23 Budget, to be $454 million.
Meanwhile Net Debt, at $8 billion, is similarly significantly improved and is $713 million lower than forecasted in the original 2022-23 Budget.
In April 2019, this government released the Fiscal Strategy Panel’s final report, A plan for budget repair and has worked to implement the recommendations. The 2022-23 operating surplus is a significant budget repair milestone for our Government.
The Territory’s economy is growing strongly and is well positioned to meet this government’s $40 billion economy by 2030 target.
State Final Demand in the Territory has grown at a rate stronger than any other Australian jurisdiction, increasing by 16.3% since December 2019. The most recent available data show the Territory’s Gross State Product increased by 4.7% in 2021-22, this was the third strongest result of all jurisdictions.
Deloitte’s recently released September 2023 Outlook expects the Territory to record solid growth in the five years to 2027-28. Their economists predict the Territory Gross State Product to grow on average 2.7% per annum over the five years. This is the strongest forecasted growth rate of all Australian jurisdictions over that period.
Quotes attributed to Chief Minister Natasha Fyles:
“The Territory economy is growing, the Budget is in a strong position, and we are working every day to build the Territory’s future.
“Getting back to an operating surplus despite all the challenges of recent years is an excellent result. We will keep managing the economy and the Budget in the interests of all Territorians.
“That means creating more jobs, delivering the essential services Territorians rely on, and doing what we can to ease cost of living pressures.”
Quotes attributed to Treasurer, Eva Lawler:
“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.
“The achievement of an operating surplus in 2022-23 and improvements in other fiscal aggregates are evidence that our fiscal strategy is working.
“Our Government set an ambitious target to grow our 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.”
Northern Territory Government
