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Budget Paper No5 Northern Territory Economy 1998/99



Budget Paper No5 Northern Territory Economy 1998/99

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Tabled Paper 382


Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT




Tabled by Michael Reed


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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STATE FINAL DEMAND The major component of GSP is State Final Demand (SFD), the sum of consumption and capital expenditure by both the private and public sectors in the Territory economy. Territory growth in 1997-98 incorporated a 4.9% increase in SFD. Growth in SFD in 1997-98 was dominated by a recovery in consumption expenditure, which experienced a decline in 1996-97. Private consumption growth was particularly strong, increasing by 7.5% in 1997-98, after growth of 7.9% in 1995-96 and 0.5% in 1996-97. Similarly, public sector consumption expenditure is estimated to have grown by 4.6% in 1997-98, after growth of 2.9% and 0.9% in the previous two years. Overall capital expenditure was essentially unchanged in 1997-98. This followed a year of very high growth in 1995-96 (22.9%) and a much smaller increase of 1.3% in 1996-97. Figure 2.3 shows a comparison of each of the four components of final demand for the Territory and Australia. Overall, the balance between consumption and capital expenditure is quite similar over time. Consumption expenditure both locally and nationally accounts for just over three-quarters of final demand. The most significant difference is that in the Territory the public sector accounts for a signif icantly higher share of total consumption expenditure than nationally. This is consistent with the higher proportion of government administration and defence in the Territory.The importance of the public sector has declined in recent years as the private sector has increasingly taken the lead in the provision of goods and services in the Territory economy. STRUCTURE OF THE TERRITORY ECONOMY A diversified economy is one in which economic activity is not concentrated in one or a few industries. 8 Northern Territory Economy 0 1 2 3 4 5 6 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98e 1998-99f 1999-00f 2000-01f 2001-02f Public Capital Private Capital Public Consumption Private Consumption $B Figure 2.2 REAL FINAL DEMAND Source: ABS Cat. No. 5242.0 (1989-90 dollars) e: Treasury estimate, f forecast

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