Treasurer Bill Yan described the CLP’s first budget as one of “action, certainty and security”. Photo: Bill Yan Facebook.
The Northern Territory is facing the prospects of increasing deficits as the CLP Government hands down its first budget since winning power in August last year.
Treasurer Bill Yan said the 2025-26 budget was the first step in the CLP’s plan to repair what he described as “Labor’s economic mess while restoring confidence, delivering cost-of-living relief, and putting victims and frontline services first”.
“This is a budget of action, certainty and security,” he said.
But that action will come at a cost, with the Territory’s net debt forecast to exceed $12 billion next year – up from $10.5 billion in 2024-25 – and will be nearly $14 billion by 2029.
Along with the increased debt, interest expenses will be $679 million next financial year to service that debt, rising to $911 million by 2029.
The budget comes during a period of population growth and an increasing need to invest in infrastructure.
“As of the March quarter of 2025, up to $9.3 billion worth of projects are under construction in the territory, with a further $680 million committed and a total project pipeline of $12.9 billion,” Mr Yan said.
“Our population is now projected to grow, with 2600 new Territorians joining us in 2025-26, and further growth forecast in each year over the forward estimates.
“The Territory’s fundamentals are strong, and under this government we are going for growth,” he added.
“We want to outpace the nation and consistently grow the Territory. A larger economy and population will increase scale, drive cost reductions, enhance services and improve labour flexibility, while reducing reliance on the Commonwealth Government.”
The budget shows the government will have to borrow $265 million to fund its day-to-day operations in 2025-26, and an additional $101 million in 2026-27.
It adds that, when infrastructure funding and the financial performance of government corporations are added to the bottom line, the government will run a fiscal balance deficit of $1.3 billion in 2025-26.
Mr Yan said the budget “puts crime victims first” and “prioritises law and order”.
Law and order initiatives include a $1.5 billion package for more police, more corrections beds, and resources for courts and victim support, and funding of $36 million a year to tackle domestic, family and sexual violence.
Infrastructure spending will include an additional $305 million for the Darwin ship lift project to add to the of $515 million already budgeted, a new policing complex in Maningrida, upgrades to remote police infrastructure, final works on new Youth Justice Centres, funding for the Corrections Masterplan, and minor works across all three justice agencies.
An additional $1.6 billion will also be allocated to education and training, including free TAFE and training bonuses for apprentices.
Other budget measures include $290 million in cost-of-living relief including capped power prices, free licences, Back to School vouchers, and a $2.5 billion investment in health including $135 million for mental health and $60 million for alcohol and drug services.
The government says its biggest cost – at $4 billion per year or 41 per cent of total expenses – is public service employees, the number of which are expected to grow by 4.9 per cent in 2025-26.
The increase in employee numbers and costs has been attributed to new funding to “support hospital and corrections demand pressures”.
Mr Yan said that when the CLP came to power, it inherited a string of underfunded frontline services and programs.
“Further, Labor had shamefully announced a record number of projects – but didn’t provide enough cash allocations to deliver many of them. Despite record announcements, Labor budgeted to reduce capital works cash allocations, again only providing time-limited funding,” he said.
“We’ve uncovered the full scale of the mess – and we’re fixing it.
“We’re bringing integrity back to the budget and hope back to the Territory. Labor left behind chaos and this budget charts the course to rebuild the economy.”
In her budget response, Territory Labor’s Opposition Leader Seena Uibo described the budget as a missed opportunity to deliver the economic leadership and community safety Territorians desperately need.
“It lacked vision. It lacked leadership. And it lacked any level of prudent spending,” she said.
“Despite receiving an extra $800 million in Commonwealth funding and $100 million more in Territory-generated revenue than the previous budget, the CLP has failed to invest in the areas that matter.
“This budget should have been a turning point,” she added.
“Instead, it’s proof the CLP Government has no plan, no vision, and no understanding of what it takes to move the Territory forward.”
