Territory Stories

Budget Paper No.2 Fiscal and Economic Outlook 2008-2009



Budget Paper No.2 Fiscal and Economic Outlook 2008-2009

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Tabled paper 1293


Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT




Tabled By Delia Lawrie


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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2008-09 Budget 20 Fiscal Position and Outlook base as assessed by the Australian Valuation Office, together with successive cash surpluses in the general government sector. Further valuation improvements on the Territorys asset base have not been factored into the forward estimates. However, due to improved cash surpluses and investment in infrastructure, net worth is expected to reach $3671 million by 2011-12. Net Debt The Territory is still a developing economy compared with other states and territories and, as a result, the Territorys current level of debt is relatively higher than other states and territories. This is highlighted in Chart 2.1, which shows the Territorys net debt as a proportion of revenue against the states 2006-07 outcomes. A further chart comparing net debt to revenue over time is provided in Chapter 3 of this Budget Paper. Source: State and territory outcome reports Net debt for the non financial public sector is projected to peak in 2010-11 at $1687 million. The increase through to 2010-11 is largely due to the significant investment of around $1 billion in capital by the Power and Water Corporation over the forward years. Net debt is then expected to reduce in 2011-12 to $1676 million. All forward estimates are nevertheless below the 2001-02 level of $1753 million. When measured as a proportion of revenue, the ratio remains largely constant over the forward years at between 36 to 38 per cent, a significant improvement on the 2001-02 level of 67 per cent. Net debt plus employee liabilities is a broader measure than net debt in that it encompasses unfunded employee entitlements, consisting largely of unfunded superannuation, which is a major liability for the Territory and most states. Over the forward estimate period, net debt plus employee liabilities is projected to increase to $4663 million in 2011-12 for the non financial public sector. Although increasing in absolute terms, when measured as a proportion of revenue, net debt plus employee liabilities for the non financial public sector will continue to fall over the forward estimates period from 106 per cent in 2008-09 to 101 per cent in 2011-12, representing a significant reduction from the 134 per cent recorded in 2001-02. Chart 2.1: State and Territory Net Debt to Revenue Non Financial Public Sector 200607 Outcomes Vic SA WA Tas NSW NT QldACT -100 -80 -60 -40 -20 0 20 40 60 80 %

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