The Northern Territory’s government has announced plans to scrap its $15 billion debt ceiling, introducing the legislation when Parliament sits in February.
With the highest levels of net debt per capita in the country, the Territory is on track to reach $15 billion of assessable debt by 2028-29.
The Finocchiaro Country Liberal Party (CLP) Government announced it will be taking steps to repair the Territory’s debt crisis while honouring its promise to protect public service jobs and not take austerity measures.
“Labor’s debt cap was nothing more than a facade,” said Treasurer Bill Yan.
Labor held government for eight years in the Northern Territory until CLP was elected last August.
The government legislated a debt ceiling of $10 billion in 2021-22 in order to limit the government's borrowing and spending power.
Yan said that with the current debt cap, the government would need to save around $1.8 billion, or $450 million per annum over four years across the budget and in forward estimates.
The 2024-25 Budget revealed record levels of debt for the Territory of more than $11 billion for the financial year.
When the Budget was handed down in May last year, the debt was projected to worsen by more than a billion in the next three years.
The debt was said to have risen as a result of the Labor government in the NT’s spending on roads, infrastructure, hundreds of millions more for police and for education.
Budget blowouts on major infrastructure projects included the Tiger Brennan Overpass (from $61.5 million to $165 million) and the Darwin Ship Lift from $100 million to at least $500 million and climbing.
“They ignored it while racking up more debt and covering up cost blowouts," he added, “The only way out of this mess is to grow our economy.”
In the announcement, the government also outlined additional measures to repair the debt crisis will include a stronger focus on gas and resources to create jobs and promote economic growth.
“We are working through our wages policy to balance service expectations along with budgetary pressures. Measures need to be considered to manage public sector growth,” said the treasurer.
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