The CLP Government has today released the 2024-25 Mid-Year Report on the Territory's economic and fiscal outlook, laying bare the devastating impact of Labor's reckless financial mismanagement.
The report highlights unsustainable levels of debt, ongoing deficits, and limited fiscal flexibility to address critical needs.
It reveals a fiscal balance deficit surging to $2 billion in 2024-25, with net debt increasing by $315 million to reach $11.1 billion.
Treasurer Bill Yan said: "This is the final nail in the coffin of Labor's mismanagement of the Territory's finances."
"It's also the final verdict on the Lawler legacy - a legacy of debt, deficits, and mismanagement," said Mr Yan.
Under Labor, net debt was projected to balloon to over $12 billion by 2027-28, with further financial pressure likely to breach the Territory's debt cap as early as 2028-29.
These alarming projections were underscored during the Under Treasurer's presentation on 28 October 2024, which revealed that the Territory would breach the debt cap in 28-29 under Labor's watch.
"Labor misled Territorians by over-promising and under-delivering, leaving our economy vulnerable," said Mr Yan.
"The fact they knew about the impending breach of the debt cap yet hid it from the public is a shocking betrayal.
"What makes it even worse is that the Leader of the Opposition, Selena Uibo, sat in the budget subcommittee of Cabinet when the 24-25 budget was developed."
The CLP Government is determined to address these challenges head-on, delivering on its election mandate to reduce crime, rebuild the economy, and restore the Territory's iconic lifestyle.
"Territorians gave us a clear mandate to clean up Labor's mess and bring responsible fiscal management back to the Territory," said Mr Yan.
"We are getting on with the job, delivering practical solutions that balance economic recovery with financial sustainability."
As part of this effort, the government has begun developing the 2025-26 Budget.
"Make no mistake - the mess Labor has left us will require difficult decisions," Mr Yan said.
"Based on current projections, the Territory could breach its debt cap by 2028-29.
"This is the devastating legacy of Labor's financial recklessness - one that now forces us to make the tough but necessary decisions to restore economic stability to the Territory."
