The Northern Territory’s debt stands to explode to $6.2 billion from $2.7 billion over the forward estimates period unless there is a significant change in financial direction, according to the latest findings posted by the Territory Government.

 

Releasing the Renewal Management Board’s progress report, Chief Minister Terry Mills and Treasurer, Robyn Lambley, said it identified the extent of the Territory’s debt position and the capacity of that debt to drain revenue from future capital and service delivery programs.

 

The report shows that interest payments, which totalled $239million last financial year, will blow-out to $460million at current interest rates by the end of Forward Estimates in 2015-16.

 

The pace of the Territory’s financial outlays significantly out-strip revenues with the $767million fiscal imbalance projected in the May 2012-13 Budget increasing to $867million three months later in the Pre-Election Fiscal Outlook.

 

“The NT is now in a seriously weakened financial position. While hindsight clearly indicates that the NT could have been in a very strong financial position had it saved more of the large increases in GST revenues and been more moderate in the capital expenditures that were undertaken, that is in the past and nothing can be done about it,” the report concluded.

 

The Renewal Management Board’s final report is expected to be released in March.