The debt-laden Gunner Government spent almost $170 million on unbudgeted policy changes — including $12 million for a grandstand at the Fannie Bay racecourse — in the two months after its May Budget was handed down.
This was despite warnings from its own Budget repair consultant John Langoulant of the urgent need to avoid the approval of spending outside the Budget decision-making cycle.
Mr Langoulant's report was commissioned by the Government after it was revealed in December that the Territory's net debt could rise tenfold to $35 billion over the next decade.
Treasurer Nicole Manison on Wednesday night tabled her Annual Financial Report, which outlines the difference between the NT Government's Budget forecasts in May, and the actual budget figures that were recorded at the end of the financial year in June.
The report revealed an overall improvement of $388 million between the NT's forecast deficit and the actual deficit.
The improvement was entirely linked to non-policy changes worth $556 million, including $17 million in higher than expected GST revenue and $33 million higher than forecast taxation and royalty revenue.
But the improvement was countered by spending on unbudgeted policy changes, including $64.5 million in capital grants, such as upgrades to sporting facilities, public schools and community infrastructure.
An additional $103 million was spent on infrastructure projects, including remote housing, public housing and roads projects.
"Governments go out, they make sure that they go and support important community projects and sometimes we use capital grants in order to do that," Ms Manison said.
"And this is also about stimulating the economy as well as delivering long-term economic benefits."
In April, Mr Langoulant released his Budget Repair Report, which made a series of recommendations aimed at preventing the Territory's debt level from spiralling out of control.
One of his key recommendations was for the NT Government to stay the course on their Budget spending plans.
"Successive Territory governments have also approved a significant amount of funding outside the annual budget development process, which erodes the integrity of the Government's fiscal strategy and targets," the report stated.
"These issues require urgent remediation through cultural change at both the agency and ministerial level."
Ms Manison defended the NT Government's recent spending of $167 million on unbudgeted policy changes.
"We are listening to industry and we are looking at ways we can stimulate economic activity and economic growth, and that's why we see infrastructure as a good investment," Ms Manison said.
Ms Manison said Mr Langoulant's recommendations were being implemented but that it was "not going to be a quick fix though and this will take years".
