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

2008-09 Budget 52 Intergovernmental Financial Issues GST projections from 2010-11. Details of the Commissions deliberations will not be known until February 2010. 2007-08 2008-09 2009-10 2010-11 2011-12 NT GST revenue ($M) 2 174.4 2 405.9 2 530 2 657.9 2 788.7 Growth (%) 7.9 10.6 5.2 5.1 4.9 National GST collections ($M) 42 230 45 270 47 670 50 130 52 637.5 Growth (%) 6.8 7.2 5.3 5.2 5.0 NT population 216 035 219 515 222 985 226 436 229 940 Growth (%) 1.6 1.6 1.6 1.5 1.5 NT share of national population 1.021 1.024 1.026 1.028 1.031 NT relativity 4.36824 4.51835 4.51835 4.51835 4.51835 Sensitivity of the Territorys GST revenue to a one per cent variation in key parameters National GST collections One year only variation ($M) 20.9 22.1 23.3 24.5 Ongoing variation ($M) 20.9 44.4 70.6 99.5 Population One year only variation ($M) 23.9 25.1 26.3 27.6 Ongoing variation ($M) 23.9 50.4 79.7 111.9 Relativity One year only variation ($M) 25.1 26.3 27.6 Ongoing variation ($M) 25.1 52.9 83.5 Source: Northern Territory Treasury, Commonwealth Government Other Commonwealth grants are predominantly in the form of specific purpose payments (SPPs). These payments are usually tied to a specific program or function against which they must be acquitted. SPPs are an important means of addressing the large vertical fiscal imbalance that exists in Australias federal system. In 2008-09, the Territory is expected to receive about $566.1 million in other Commonwealth grants. The majority of these payments will be in the areas of health, education and transport. A detailed summary of SPPs is included in Budget Paper No.3. SPPs have historically been governed by formal agreements between the Commonwealth and the states which set out conditions such as: the programs and functions for which the funds may be used; the contribution of state discretionary funds through matching or maintenance of effort requirements; restriction on how funded programs may be delivered; and performance and reporting requirements. The existing SPP arrangements are currently being reformed by the Council of Australian Governments (COAG) as part of the reform to the architecture of Commonwealth-State Financial Relations. While the reforms will result in changes to SPP arrangements, the Commonwealth has provided assurances that the total level of SPP funding will not decrease. The reforms to Commonwealth-State financial relations are discussed later in this chapter. Table 5.1: Northern Territory GST Revenue Projections Other Commonwealth Grants