Territory Stories

Budget papers 2010 - 2011

Details:

Title

Budget papers 2010 - 2011

Other title

2010/11 Budget paper

Creator

Northern Territory. Department of Treasury

Collection

Northern Territory budget papers; Reports; PublicationNT

Date

2010-05-04

Notes

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Language

English

Subject

Appropriations and expenditures; Periodicals; Budget; Finance, Public

Publisher name

Northern Territory Government

Place of publication

Darwin

Volume

2010/11

File type

application/pdf

Use

Attribution International 4.0 (CC BY 4.0)

Copyright owner

Northern Territory Government

License

https://creativecommons.org/licenses/by/4.0/

Parent handle

https://hdl.handle.net/10070/244913

Citation address

https://hdl.handle.net/10070/591565

Related items

https://hdl.handle.net/10070/591566; https://hdl.handle.net/10070/591568; https://hdl.handle.net/10070/591570; https://hdl.handle.net/10070/591556; https://hdl.handle.net/10070/591558; https://hdl.handle.net/10070/591560; https://hdl.handle.net/10070/591562

Page content

4 Fiscal Outlook 2010-11 Budget Fiscal Outlook Governments Fiscal Strategy Sustainable Service Provision Target: Expenditure growth not to exceed revenue growth, excluding tied Commonwealth funding. Assessment: Return Budget to surplus once economy improves. Infrastructure for Economic and Community Development Target: Maintain total public sector infrastructure investment at appropriate levels. Assessment: Infrastructure spending of at least twice depreciation expenses on average over the current economic cycle and at least equal thereafter. Competitive Tax Environment Target: Ensure Territory taxes and charges are competitive with the average of the states and territories. Assessment: Taxation effort below the state average. Prudent Management of Debt and Liabilities Target: Reduce debt to pre-GFC levels once the economy rebounds. Assessment: Once economy improves, debt levels to reduce on average by 5 per cent per annum of additional debt incurred since 2007-08. The 2010-11 Budget invests significantly in infrastructure in order to stimulate the Territory economy and protect jobs while planning to return the Budget to a surplus position over time. The fiscal highlights in the 2010-11 Budget include: operating surpluses maintained for all forward years; substantial infrastructure investment in 2010-11 of $1817 million, and remaining higher than long term trends in all forward years; cash outcome and accrual fiscal balance in deficit over the economic cycle but trending to improvement by 2013-14; and the ratios of net debt and net financial liabilities to revenue to increase as a result of significant infrastructure investment and prevailing economic conditions while remaining below 2001-02 levels. The fiscal outlook of the Territory continues to be affected by constrained revenue growth despite the national economy moving into a recovery phase, and the outcome of the Commonwealth Grants Commissions major review of GST relativities. The current outlook means that achievement of fiscal strategy targets, will continue to be a challenge to the Territory, requiring ongoing expenditure restraint in addition to the budget improvement measures included in the 2010-11 Budget. General Government Fiscal Aggregates 2009-10 2010-11 2011-12 2012-13 2013-14 Estimate Budget Forward Estimates $M $M $M $M $M Operating Result 371 441 98 56 57 Fiscal Balance - 186 - 310 - 211 - 115 - 81 Cash Outcome - 137 - 268 - 173 - 90 - 61 Note: surplus (+), deficit (-) Net Debt and Net Financial Liabilities (NFL) General Government Sector Year Ended 30 June 2008 2009 2010 2011 2012 2013 2014 Net debt ($M) 887 837 901 1 256 1 442 1 567 1 680 Net debt to revenue (%) 23 20 20 26 32 36 37 NFL ($M) 3 381 3 749 3 851 4 264 4 507 4 676 4 828 NFL to revenue (%) 87 90 84 89 102 106 108 Lowest Taxes Budget 2010-11 continues the Territory Governments commitment to cutting business expenses, maintaining the lowest level of tax on businesses in Australia. For businesses with wage costs of up to $5 million, the Territory has the most competitive payroll tax scheme, with the Governments tax reform strategy delivering cumulative savings of $291 million to small and medium businesses since 2001. 250 300 350 400 450 $(000) NSW ACT Tas WA Qld Vic SA NT State average = $365 865 Recurrent Taxes on Businesses with 100 Employees