Bill Yan signals tough Budget

By ERWIN CHLANDA

Treasurer Bill Yan is foreshadowing a tough May Budget by highlighting a blunt warning from the International Monetary Fund “as evidence of the fiscal damage left by the former Labor government”.

He says in a media statement the fund flags state and territory debt across Australia has surged, fiscal targets have been missed, and credit rating pressure is rising with smaller jurisdictions including the NT experiencing particularly rapid debt growth relative to their economies.

“Labor left the Territory exposed after eight years of irresponsible spending,” says Mr Yan.

"When the Finocchiaro CLP Government came to office in 2024, the Territory was on track to smash through a $15 billion debt ceiling.

"The Finocchiaro CLP Government has since stabilised the books by controlling expenditure and reducing business taxes, and the next budget we’re releasing for 26/27 isn’t going to be extravagant.”

Constraining debt growth is already showing results, reducing the 2025/26 projected debt level by $479 million and helping maintain the Territory’s Aa3 Stable credit rating from Moody's.

"We didn’t get a downgrade, which was our biggest worry. That stability was not inherited – it was earned."

Mr Yan says the government is preparing the economy to capitalise on “the Territory's natural strengths to support the growing energy, mining, and defence sectors … supported by competitive payroll tax arrangements and practical cost-of-living relief.

"When we raised the tax-free threshold and exempted apprentices and trainees, we saw businesses investing in their workforce, improving their wages, and new businesses kicking off, which has improved our payroll tax revenue.”

PHOTO ABC News