NT debt to hit $12.55b as budget delivers no new cost of living relief

The Northern Territory's debt is set to climb to $12.55 billion next financial year after the government handed down a budget delivering record spending on health and law and order but without offering any new cost-of-living relief.

The Country Liberal Party (CLP) government's second budget has revealed a modest improvement to the NT's debt position, which is now forecast to climb more slowly than previously predicted — despite heavy spending on recent natural disaster relief.

The improved bottom line is largely due to increased mining royalties, GST growth and increased income generated from stamp duty in the territory's booming housing market.

But the budget also revealed a further $30 million cost blowout for the beleaguered ship lift project, which has now reached $850 million and is not expected to generate any revenue for the government.

The budget, handed down today, shows the NT's net debt per capita remains among the nation's highest, rising to $61,800 per person — up from $57,500 in the previous financial year.

On Tuesday, Treasurer Bill Yan said the budget would "make lives better" for Territorians, despite offering no new cost of living measures for families.

Law and order was among the budget's biggest spending priorities, with a record $1.7 billion allocated to support the government's tough-on-crime agenda.

That figure includes $654 million for NT Police, $524 million for Corrections and $250 million for justice services, including courts and legal aid.

Funding has also been earmarked to accommodate the NT's swollen prison population, including $15 million to design new men's and women's jails in Darwin, $250 million for work camps in Katherine and Darwin, and $48 million over four years to employ 212 new police public safety officers.

The budget also includes a record infrastructure commitment of $2.7 billion, including money to fix the territory's roads.

Another $2.62 billion has been allocated to health over the coming financial year.

Charles Darwin University economist Rakesh Gupta described the latest budget as "disciplined" but not "transformational".

Dr Gupta said while overall revenue was improving, he cautioned that the government's projections — that debt would stabilise in the 2027-28 financial year — may be optimistic, pointing to slowing employment growth and population growth of just 1.1 per cent.

Dr Gupta said the territory's revenue outlook was heavily reliant on mining royalties and Darwin's property market, both of which had seen unusually strong growth that was "to some degree, unsustainable".

Dr Gupta said the budget did not set out a clear strategy for sustained job creation or long-term economic growth and questioned whether the government's infrastructure spend would make any long-term difference.

"It's not ambitious," he said.

"It is spending on the basic infrastructure to provide for the businesses to grow, but it is not [providing] direct employment growth.

"There is no ongoing employment creation strategy that I see here."

Dr Gupta said the government could "defend the debt if it builds future capacity".

"But big, high debt must always be matched by high-quality outcomes that we are not seeing very clearly as yet," he said.

More broadly, Dr Gupta said the budget did little to support long-term growth across local business, skilled migration, population expansion, Indigenous enterprises or regional economies.

Instead, he said it largely focused on one-off infrastructure projects and short-term measures.

"These things are important," he said.

What else is in the budget?

$1.4 million per year in 2026-27 and 2027-28 to develop the Beetaloo Sub‑Basin.

$18.3 million per year to open and operate a new, 32-bed multipurpose modular ward at Royal Darwin Hospital.

$10 million per year to expand road ambulance services.

$5 million per year to maintain parks and reserves.

$3.3 million per year to safeguard fisheries.

$3 million per year for three years to secure Australian Football League matches across the NT.

$1 million per year for two years for international cricket matches to be held in the Territory.

$3.8 million per year for two new local court judges.

$2.5 million to support increased use of electronic monitoring for people on bail.

What's being cut?