Budget 2014-2015 Budget Overview
Tabled paper 832
Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT
Tabled by David Tollner
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.
2 BUDGET 2014-15 Budget Overview Budget at a Glance The 2014-15 Budget has a focus on eliminating the Territorys fiscal deficit by 2017-18, through increased own-source revenue and service delivery improvements, while ensuring the Governments priorities are achieved. The 2014-15 Budget provides resources to develop Northern Australia by building on the Governments key priorities of attracting investment in mineral resources, increasing tourist visitation, expanding the Territorys primary industries, investing in infrastructure and increasing the supply of affordable housing. Fiscal Position The Government has continued its targeted elimination of the fiscal deficit in order to stabilise the Territorys debt burden by 2017-18. The fiscal deficit has improved significantly since the May 2013 Budget, with a small deficit of $39million projected by 2017-18. The significant improvement is a result of additional own-source revenue due to the current economic conditions, efficiency measures across general government agencies and the improving financial position of the Power and Water Corporation. Key Economic Indicators Economic growth in the Territory is estimated to be 5.0percent in 2013-14, strengthening to 6.0percent in 2014-15. Growth is expected to be underpinned by an acceleration of onshore construction activity related to the INPEX Ichthys liquefied natural gas project. In the forward years, the Territory economy is expected to undergo a significant transition. From 2015-16, private investment is expected to moderate and net exports are expected to emerge as the primary driver of economic growth as the Ichthys project transitions from the construction to the production phase. Territory employment growth is expected to strengthen over the next two years to 3.8percent in 2014-15, supported by elevated levels of construction activity that is expected to flow through to other industries in the Territory. Consistent with economic activity, Territory population growth is estimated to increase by 1.6percent in 2014 before strengthening to 2.6percent in 2015. In the forward years, Territory employment and population growth are expected to moderate as the Ichthys project transitions from the construction phase to the less labour-intensive production phase. Key Economic Indicators 2012-13 2013-14e 2014-15f 2015-16f 2016-17f 2017-18f % % % % % % Gross state product1 5.6 5.0 6.0 3.0 4.0 3.5 Population2 2.3 2.0 1.6 2.6 1.0 1.0 Employment3 2.6 3.7 3.8 2.1 0.7 0.7 Consumer price index4 2.0 3.9 3.0 2.8 2.5 2.5 e: estimate; f: forecast 1 Year ended June, year-on-year percentage change, inflation adjusted. 2 As at December, annual percentage change. 3 Year-on-year percentage change. 4 As at December, year-on-year percentage change. Source: ABS; Department of Treasury and Finance Operating Expenses Funding to key service delivery agencies in 2014-15 includes: $1.35 billion for Health; $871 million for Education; $382 million for Police, Fire and Emergency Services; $310 million for Housing; $161 million for Children and Families; $223 million for Correctional Services; and $153 million for Community Services. Regional Development The 2014-15 Budget initiatives include: $17.5 million to upgrade essential services infrastructure in remote communities; $10 million for strategic regional economic infrastructure; $49.2million to support the local economies of regional areas including funding for vocational education and training, tourism marketing and livestock and mining industry support; and $184.2 million in 2014-15 under the ten-year Stronger Futures in the Northern Territory National Partnership Agreement to improve Indigenous outcomes.
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