Territory Stories

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



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

Other title

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.




Tabled papers

File type




Copyright owner

See publication



Parent handle


Citation address


Page content

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