Territory Stories

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

Details:

Title

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

Other title

Tabled paper 1293

Collection

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

Date

2008-05-06

Description

Tabled By Delia Lawrie

Notes

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.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/283912

Citation address

https://hdl.handle.net/10070/410393

Page content

29 because the effect of the additional capital spending is taken into account in the cash outcome. The cash outcome is estimated to be a small surplus in 2007-08 with continued improvement estimated in all forward years rising to a projected surplus of $50 million by 2011-12. The improved financial position in 2007-08 has enabled a contribution of $20 million to be put aside towards future infrastructure and superannuation requirements, resulting in an underlying surplus of $5 million. Table 3.2 compares the cash targets set in the 2007-08 Budget with the revised 2008-09 Budget targets. 2007-08 2008-09 2009-10 2010-11 2011-12 Estimate Budget Forward Estimates $M $M $M $M $M 2007-08 Budget - 40 0 17 34 na 2008-09 Budget 5 9 21 37 50 Source: Northern Territory Treasury The improved cash position and operating surplus indicates that the accrual target of an operating balance by 2012-13 will be met. Infrastructure for Economic and Community Development Target: Maintain Capital Investment at Appropriate Levels and Achieve Fiscal Balance by 2012-13 Capital investment plays a central role in the Governments budget strategy and is essential for the delivery of the Territorys social and economic requirements. The provision of adequate levels of infrastructure is an ongoing challenge for the Territory due both to its remoteness and its stage of development, relative to other jurisdictions. The fiscal balance provides a more complete measure of the Territorys overall financial position (that is, whether it is a net lender or a borrower of funds). It includes the effects of all operating costs and the change in net physical assets. A fiscal balance deficit would be consistent with a developing jurisdiction such as the Territory. In all years the additional funds arising from the improved operating result have been applied to increased capital spending rather than a reduction in net debt. Table 3.3 below shows the fiscal balance deficit trending downwards towards a balanced position, with a projected fiscal balance surplus of $6 million in 2011-12. 2007-08 2008-09 2009-10 2010-11 2011-12 Estimate Budget Forward Estimates $M $M $M $M $M 2007-08 Budget - 96 - 41 - 32 - 10 na 2008-09 Budget - 67 - 81 - 47 - 31 6 Source: Northern Territory Treasury Table 3.2: Cash Outcome General Government Table 3.3: Fiscal Balance General Government


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