Territory Stories

Budget 2013/14 Northern Territory Economy

Details:

Title

Budget 2013/14 Northern Territory Economy

Other title

Tabled paper 295

Collection

Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT

Date

2013-05-14

Description

Tabled by David Tollner

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

Publisher name

Department of the Treasury and Finance

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C00866

Parent handle

https://hdl.handle.net/10070/273751

Citation address

https://hdl.handle.net/10070/426369

Page content

24 Economic Growth 2013-14 Budget Economic growth in the Territory is forecast to strengthen to 5.0percent in 2013-14, driven by works related to the Ichthys project as well as oil exports as the Montara Venture reaches peak production. Nevertheless, SFD is forecast to decline by 15.3percent to $23.7 billion, driven by a 38.1percent decline in private investment expenditure, relating to the decline in value of progress payments made by INPEX. While investment expenditure is forecast to decline, construction activity at the Ichthys LNG plant is forecast to increase substantially (see TheIchthys Project earlier in this chapter). Overall construction activity is forecast to increase by 17.4percent in 2013-14 reflecting works at the Darwin Correctional Precinct, the completion of expansion activity at GEMCO and McArthur River mine, the Marine Supply Base, the gas to Gove project, and residential construction activity in the Darwin region (seeChapter11:Construction). Public investment expenditure is forecast to decline further in 2013-14 as the Territorys capital works program and Commonwealth investment wind back as fiscal consolidation continues. Growth in total consumption expenditure is expected to strengthen in 2013-14 with growth in household consumption partly offset by weakness in the public sector. Household consumption is expected to be driven by strengthening employment, population and private sector wages growth and flow-on effects to the housing sector. The Territorys international trade surplus is expected to widen substantially in 2013-14, driven by a full years worth of production from the Montara oilfields (see Chapter 8: International Trade). Imports are expected to remain relatively high, driven by the commencement of arrivals of PAMs and other components associated with the construction of the Ichthys LNG plant. The Territory economy is forecast to grow by 7.0percent in 2014-15, driven by record levels of engineering work done in line with peak construction of the Ichthys project, the gas to Gove project, increased household consumption associated with population growth and dwelling construction, and investment in new machinery and equipment as a result of major projects. While engineering construction activity is expected to reach record levels in 2014-15, SFD is forecast to decline by 7.6percent in the year, reflecting the completion of progress payments for components of the Ichthys project. Total consumption expenditure is forecast to increase by 1.9percent in 2014-15. Growth in household consumption expenditure is expected to peak at 3.4percent in the year reflecting peak employment and population and private sector wages growth. Partly offsetting the growth in household consumption will be forecast declines in public consumption expenditure as further fiscal budgetary tightening occurs at the local, state and national levels. Public investment is also expected to decline in 2014-15, due to ongoing reductions to infrastructure spending at Power and Water Corporation. 2013-14 2014-15


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