Northern Territory budget papers 2003 - 2004
2003/04 Budget paper
Northern Territory. Department of Treasury
Northern Territory budget papers; E-Journals; PublicationNT
2003-05-29
Made available via the Publications (Legal Deposit) Act 2004 (NT).; Please Note: This can't be read online. Please download to read the documents
Northern Territory Budget paper No. 01 2003-04 Speech and Appropriation Bill -- Northern Territory Budget paper No. 02 2003-04 Fiscal and Economic Outlook -- Northern Territory Budget paper No. 03 2003-04 The Budget -- Northern Territory Budget paper No. 04 2002-03 Capital Works Program -- Northern Territory Budget paper No. 05 2002-03 Budget Overview -- Budget paper No. 06 2002-03 NT Economy -- Northern Territory Budget paper No. 07 2002-03 Regional Highlights -- Northern Territory Budget paper No. 08 2002-03 Building Territory Business
English
Appropriations and expenditures; Periodicals; Budget; Finance, Public
Northern Territory Government
Darwin
2003/04
application/pdf
Attribution International 4.0 (CC BY 4.0)
Northern Territory Government
https://creativecommons.org/licenses/by/4.0/
https://hdl.handle.net/10070/591859 [LANT: E-Journals: Northern Territory Budget paper No. 01 2003-04 The Speech and Appropriation Bill]; https://hdl.handle.net/10070/591861 [LANT: E-Journals: Northern Territory Budget paper No. 02 2003-04 Fiscal and Economic Outlook]; https://hdl.handle.net/10070/591863 [LANT: E-Journals: Northern Territory Budget paper No. 03 2003-04 The Budget]; https://hdl.handle.net/10070/591865 [LANT: E-Journals: Northern Territory Budget paper No. 04 2003-04 Capital Works Program]; https://hdl.handle.net/10070/591867 [LANT: E-Journals: Northern Territory Budget paper No. 05 2003-04 Budget Overview]; https://hdl.handle.net/10070/591869 [LANT: E-Journals: Northern Territory Budget paper No. 06 2003-04 NT Economy]; https://hdl.handle.net/10070/591871 [LANT: E-Journals: Northern Territory Budget paper No. 07 2003-04 Regional Highlights]; https://hdl.handle.net/10070/591873 [LANT: E-Journals: Northern Territory Budget paper No. 08 2003-04 Building Territory Business]
https://hdl.handle.net/10070/244898
https://hdl.handle.net/10070/591861
https://hdl.handle.net/10070/591865; https://hdl.handle.net/10070/591867; https://hdl.handle.net/10070/591869; https://hdl.handle.net/10070/591871; https://hdl.handle.net/10070/591873; https://hdl.handle.net/10070/591859; https://hdl.handle.net/10070/591863
Appendix: The State and Territory Shares of National Revenues - Update ________________________________________________________________________________________________ 71 EFFECT OF TAX REFORM Figure 4 demonstrates the initial improvement in the States share of national revenue after the implementation of tax reform in 2000-01. However, this does not result in an increase in funding or an improvement in the budgetary positions of the States in the early years. Under the transitional arrangements of the IGA, the Guaranteed Minimum Amount ensures that the States will receive the same level of funding that they would have received if tax reform had not taken place. In 2000-01 and 2001-02, the Commonwealth experienced a decrease in its share of national revenue. This resulted from a reduction in Commonwealth revenue in the ANTS package. The reduction in Commonwealth revenue occurred through the abolition of Commonwealths wholesale sales tax (which was replaced by the GST) and through a reduction in personal income and company tax rates. This increased the States share of national revenue in 2000-01 and 2001-02 while not providing any additional funding to State budgets. FIGURE 4 STATE SHARE OF COMMONWEALTH AND NATIONAL REVENUE For the purposes of this analysis, GST is defined as a State tax collected by the Commonwealth on an agency basis. Source and methods provided at the end of this appendix. Figure 4 also demonstrates the decline in the States share of national revenue thereafter, continuing the trend prior to 1998-99, evident in the 2001 report. Therefore, while some States in the forward estimates period will receive GST revenue which is in excess of their Guaranteed Minimum Amount (GMA), this amount is insufficient to offset the decline in States share of national revenue. As well, the States own-source revenue as a percentage of national revenue declines. The States will continue to receive specific purpose payments, which the Commonwealth has agreed will not be reduced as part of the reform process. The States also retain a reduced own-source revenue capacity. The States received a significant increase in tax revenues during the property boom of the late 1990s, however this is expected to decrease considerably across the forward estimates period. Following the introduction of the GST (included here with State taxes) in 2000-01, Commonwealth grants to the States as a percentage of national revenue fell significantly. With the exception of increased Commonwealth grants in the form of budget balancing assistance grants as compensation for the abolition of further State taxes in 2001-02, Commonwealth grants to the States (as a percentage of national revenue) declined further in 2002-03 representing 7.2 per cent of national revenue. Thereafter, in the forward estimates period, Commonwealth grants to the States (as a percentage of national revenue) are forecast to be stable. 0 10 20 30 40 50 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 % Post-Tax Reform Commonwealth Grants as % of National Revenue State Share as % of National Revenue State Own-Source Revenue as % of National Revenue Pre-Tax Reform 41.8 40.2 40.3 41.5 40.7 39.3 38.9 38.7 27.8 26.4 32.9 33.2 33.5 32.6 32.3 31.9 14.0 13.8 7.4 8.3 7.2 6.8 6.8 6.8