Budget Paper No.2 Fiscal and Economic Outlook 2008-2009
Tabled paper 1293
Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT
Tabled By Delia Lawrie
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2008-09 Budget 34 Fiscal Strategy 2007-08 2008-09 2009-10 2010-11 2011-12 Estimate Budget Forward Estimates Net Debt ($M) 2007-08 Budget 1 693 1 748 1 749 1 742 na 2008-09 Budget 1 477 1 578 1 637 1 687 1 676 Variation - 216 - 170 - 112 - 55 na Net Debt to Revenue (%) 2007-08 Budget 45 45 44 42 na 2008-09 Budget 37 38 38 38 36 Variation - 8 - 7 - 6 - 4 na Net Debt + Employee Liabilities ($M) 2007-08 Budget 4 382 4 481 4 537 4 578 na 2008-09 Budget 4 203 4 382 4 510 4 623 4 663 Variation - 179 - 99 - 27 45 na Net Debt + Employee Liabilities to Revenue (%) 2007-08 Budget 116 115 114 110 na 2008-09 Budget 104 106 104 104 101 Variation - 12 - 9 - 10 - 6 na Source: Northern Territory Treasury 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 jurisdictions. The level of net debt plus employee liabilities as a percentage of revenue has dropped from 134 per cent in June 2002 and continues on a downward trend in forward years to 101 per cent projected in 2011-12. This relationship has been maintained despite rising superannuation liabilities and record investment in infrastructure. Overall, the Territory continues to maintain its trend towards the medium-term fiscal objectives and targets as set out in the Fiscal Strategy. The significant improvements to the net operating balance and cash targets, projected to be in surplus in all forward years, together with the improving fiscal balance, suggest that the target of a balance on an accrual basis by 2012-13 remains achievable. The Territory Government is also continuing its commitment to maintain taxation at competitive levels to encourage increased levels of business activity. This has been reinforced by three key measures introduced as part of the 2008-09 Budget that build on economic and employment growth. Net debt has improved since the 2007-08 Budget and is projected to remain constant as a ratio to revenue over the forward years. This is despite record levels of investment in the Territorys infrastructure base. Net debt plus employee liabilities as a proportion of revenue continues to fall and, at 101 per cent in 2011-12, is significantly below the 2001-02 level of 134 per cent. Table 3.8: Net Debt and Employee Liabilities Non Financial Public Sector Conclusion
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