What is the Territory's budget position?

BP2 Budget Strategy and Outlook

Table 1.1 provides a summary of the key fiscal measures in the 2024-25 Budget – the latest estimate for the current year, the new budget for 2024-25 and the forward estimates for the following three years.

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BP2, Table 1.1: Key fiscal indicators

The general government sector incorporates agency departments, government business divisions and other entities (such as statutory corporations) that are controlled by government and mainly engaged in the production of goods and or services that are largely non-market in nature and for the collective consumption by the community.

The net operating balance represents total revenue less total expenses. It encompasses the full cost of providing government services, and is a measure of the sustainability of government’s fiscal position over time.

The Territory Government reports the fiscal balance measure at the non financial public sector level, which includes the general government sector and public non financial corporations, such as the Power and Water Corporation, Territory Generation and Jacana Energy.

The fiscal balance (also known as net lending/borrowing) reflects the net operating balance (excluding depreciation) plus net capital investments. This measure is an indicator of the Territory’s borrowing requirements. A fiscal surplus indicates government can finance its operating and capital activities through revenues. A fiscal deficit indicates revenues are insufficient to fund government’s operating and capital accounts without further borrowings.

Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements. This measure is used to assess the overall strength of the Territory’s fiscal position. Net debt to revenue assesses net debt as a proportion of total revenue. It assesses government’s ability to repay its borrowings, with a higher ratio indicating lower ability to repay and a lower ratio indicating a stronger ability to repay.

Readers can also go to Chapter 4: Fiscal strategy statement, which outlines the government’s fiscal strategy and assesses budget projections against the fiscal strategy objectives and targets.