Northern Territory Government Blows Budget

“The spendthrift Labor Government has maxed out its credit card and Territory taxpayer’s will have to pick up the future interest bill,” says Terry Mills, Leader of the Territory Opposition.

In Estimates today the Treasurer was forced to concede that she had spent the Treasurer’s Advance to its absolute limit of 5% of the Appropriation Act Allocations.

The Treasurer’s Advance is best understood as a rainy day fund for Government. Each year Government puts $40 million into the Treasurer’s Advance to cover unanticipated expenditure.

“With good budgeting that $40 million become part of the surplus at the end of the year,” says Terry Mills.

“By December the Government had spent the original $40 million needed to kick another $95 million into the Treasurer’s Advance to cover its growing expenditure.

“Last Thursday the Government kicked another $42 million into the Treasurer’s Advance, meaning this year’s Treasurer’s Advance expenditure now stands at $177 million.

“The $137 million allocated in addition to the original $40 million represents 5% of the total Appropriation Act Allocations– the absolute maximum allowed by law.

“It is disgraceful that in week the Labor Government will spend $500,000 on a party to open a building, it also emerges they’ve reached the limit of their overdraft.

“This Labor Government throws money around like drunken sailors.

“Had it not touched the Treasurer’s Advance it would have had a surplus of $182 million, instead of the pitiful $5 million announced in the recent budget.

“A $177 million surplus could have made a significant contribution to cutting Government debt.

”With every man, woman and child in the Territory owing $4761 (closer to $16,000 including the unfunded superannuation liability), an excellent opportunity has been lost to reduce future interest payments.”

2008-06-17