Budget Paper No.2 Fiscal and Economic Outlook 2008-2009
Tabled paper 1293
Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT
2008-05-06
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.
English
Tabled papers
application/pdf
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https://www.legislation.gov.au/Details/C2019C00042
https://hdl.handle.net/10070/283912
https://hdl.handle.net/10070/410393
27 Fiscal Strategy This chapter outlines the Territory Governments fiscal strategy, including mediumterm fiscal objectives and financial targets. The fiscal strategy provides a sound financial management framework to ensure sustainable service provision, continued capital investment, reducing debt levels and a competitive tax environment that supports economic growth. The 2008-09 Fiscal Strategy and targets are consistent with those set out in the 2007-08 Budget, however the updated estimates for 2008-09 and the forward years reflect improvements when compared with the 2007-08 estimates. A limited revenue base and high expenditure requirements make the Northern Territory markedly different to other Australian jurisdictions and therefore a strong financial position and fiscal discipline are paramount for the Territory. The Governments medium-term fiscal objectives and projected achievements against targets are: Sustainable Service Provision Target: General government net operating balance by 2012-13. Assessment: Operating surplus estimated for all years from 2007-08 to 2011-12. Infrastructure for Economic and Community Development Target: Maintain infrastructure investment at appropriate levels and achieve a general government fiscal balance by 2012-13. Assessment: Record infrastructure spending in 2008-09 and continuing high levels over all forward years to 2011-12. Assessment: Fiscal balance continues on a trend of improvement with a net surplus of $6 million estimated for 2011-12, a year prior to the target year. Competitive Tax Environment Target: Ensure Territory taxes and charges are competitive with the average of the jurisdictions. Assessment: Taxation revenue per capita is $1848 in 2008-09. The second lowest, after Tasmania, and significantly lower than the average of the states at $2624. Prudent Management of Liabilities Target: Net debt plus employee liabilities as a proportion of total revenue to fall. Assessment: Net debt plus employee liabilities to revenue ratio continues to fall over the forward estimates and is projected to be 101 per cent by 2011-12. The Fiscal Integrity and Transparency Act (FITA) requires the Treasurer to deliver a fiscal strategy statement at the time of each Budget which specifies the Governments medium-term fiscal objectives and key financial targets. Under the FITA, the fiscal strategy statement must be based on principles of sound fiscal management to: formulate and apply spending and taxation policies having regard to the effect of these policies on employment, economic prosperity and the development of the Territory economy; Chapter 3 Overview Fiscal Principles