NT budget to sink into red

Tuesday's Northern Territory budget will sink into the red for the first time in
seven years.
A deficit of about $50 million is expected to be recorded this financial year on the
back on the global economic downturn.
The financial meltdown will hit the NT economy even harder in 2009/2010, pushing the
government into more than $150 million of debt.
"It has been the toughest budget to frame since self government (in 1978)," NT
Treasurer Delia Lawrie told reporters on Monday.
"We will be needing to spend more in the coming years to take the territory through
the toughest prevailing economic conditions in 75 years."
GST revenue had "dramatically collapsed" with about $210 million of federal funds
expected to dry up next financial year, Ms Lawrie said.
But the territory Labor government - which has delivered six surplus budgets since
coming to power in 2001 - says it will not counter the crisis by increasing taxes or
sacking public servants.
Most of the spending in the $3 billion budget has already been announced -
infrastructure and health are the big winners.
A record $1.05 billion will fund 17 extra doctors and 95 nurses, more dental
services and hospital upgrades.
Ms Lawrie also announced $1.3 billion in infrastructure investment in roads,
highways, schools and housing, creating 2,500 jobs.
"The government has made a deliberate decision to keep spending to protect territory
jobs ... and as a result of that the government will go into deficit," she said on
Monday.
The government has also announced $6.5 million for an extra 54 cops and a $3.3
million funding boost for court services.
More than $20 million will go towards building a new 1,000-bed correctional facility.
The carve-up of the remaining budget dollars will be announced on Tuesday, with
education expected to walk away with the largest piece of the pie.
Last May, Ms Lawrie delivered her first budget and forecast a $9 million underlying
cash surplus for 2008/09, jumping to $34 million in 2010/2011.