The Northern Territory treasurer is staying bullish on the government's target to create a $40 billion economy by 2030, despite the latest budget forecasting a significant shortfall on that by 2027.
The budget, released today, features massive spends on roads and housing for the territory, and a significant increase in funding to the overwhelmed prison sector.
The budget sees a record $2.11 billion spend on infrastructure this fiscal year, up from $1.79 billion last year.
The multi-billion-dollar spending plans will see the territory fall deeper into a deficit in the coming financial year, with the treasurer predicting the budget to be back to black by 2026-27.
The budget papers show the territory will head into a $200 million net operating deficit — which involves the day-to-day spending to run the government — in the coming financial year.
The territory will also hit a fiscal balance deficit of $1.13 billion — the capital works budget — in the same period.
In her first budget speech, Treasurer Eva Lawler said despite the big spends, the budget papers reflect the government's "strict fiscal measures".
"We are a growing economy because we are diversifying our economy — and diversification means opportunity," Ms Lawler said.
The NT government also remains set on its deadline to create a $40 billion economy by 2030, however the budget forecasts this to be about $13 billion shy of that target by 2027.
The government reiterated its target of having 50 per cent renewables by 2030 through a major transformation of the jurisdiction's largest power grid.
In heading to that goal, the government has committed $12 million for a new renewable energy hub.
"2030 is not far away, and it is a double deadline for us because we have also set ourselves the second target of arriving at a $40 billion economy by 2030," she said.
However, the government's future forecasts remain reliant on major projects that are yet to get off the ground — particularly gas giant Santos' Barossa gas project in the Timor Sea, which remains somewhat uncertain due to ongoing court challenges by traditional owners.
Big boost to Corrections, but no additional frontline police officers
As the territory continues to battle against a surge in crime, the budget does not include any substantial boost to the number of frontline police on the ground.
It does offer $19 million for a new permanent police station for the remote community of Peppimenarti, which has been struggling with an increase in social unrest.
NT Police will also receive additional resources, with the budget featuring funding for new police aircraft, and $3 million to put a new police wellbeing strategy in place.
Corrections staff will see a $30 million boost to their operating budget for next year to help deal with the fact the jails in Alice Springs and Darwin are at capacity.
The Aboriginal Justice Agreement — a framework designed to reduce high rates of Indigenous incarceration — will also be funded to the tune of $65 million to pay for a range of initiatives to take the pressure off the justice system for First Nations people.
There's also been an increase of $20 million flagged to battle domestic and family violence levels across the territory, which remain among the highest in the nation.
As the NT's main hospital, Royal Darwin Hospital, continues to face significant staffing pressures, hospitals will receive an injection of $100 million over the next three years.
Government pledges cost-of-living relief
At a time when Australians face growing cost-of-living concerns, Ms Lawler said this year's budget would "not add to the pain" for territorians feeling the pinch.
Ms Lawler reiterated the government's pledge to cap utility prices below inflation.
"Our government understands the financial stress that families are experiencing," Ms Lawler said.
"Forecasts for wages growth in the territory have been revised upwards due to tight labour markets.
"Meanwhile, inflation — specifically in Darwin — is expected to subside more quickly than in other places in the nation."
The government said the predicted inflation drop would be due to a plateauing of residential property rents, which it said were not expected to increase in the Top End as they were in other states.
Remote community housing was pegged as one of the largest spending areas in the budget, with the government committing more than 20 per cent of the new infrastructure budget to help alleviate overcrowding problems.
