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 2025-26 Budget - the latest estimate for the current year, the new budget for 2025-26 and the forward estimates for the following 3 years.

Read Budget strategy and outlook (BP2) PDF (1.2 MB).

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. These sectors are mainly engaged in the production of goods and or services that are largely non-market in nature, produced free of charge or at nominal charges well below costs of production, 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 ongoing sustainability of government’s operations.

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 investment. This measure is an indicator of the Territory’s borrowing requirements. A fiscal surplus indicates that government is saving enough to finance its operating and capital spending. A fiscal deficit indicates revenues are insufficient to fund government’s operating and capital spending 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 high ratio indicating a lower ability to repay debt and a low ratio indicating a stronger ability to repay debt.

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.