The Country Liberal Party government in the Northern Territory says it is delivering a record $1.73 billion investment in law and order in its second budget, delivered by Treasurer Bill Yan on Tuesday.
That builds on 2025's record $1.54 billion investment across police, courts and corrections.
"We promised to reduce crime, rebuild the economy and restore our unique territory lifestyle, and we are getting on with the job," Chief Minister Lia Finocchiaro said.
"In our first year, the number of victims of crime fell by 10.2 per cent and as a result, business confidence is returning, and the territory economy is growing.
"We know there is more work to do and this budget cements our focus on law and order."
Delivering his second budget Mr Yan said it was focused on the needs of territorians, without wasteful spending.
It was designed to restore confidence and prompt private sector investment but anyone looking for "lollies and sweets" in the budget would be disappointed, he said.
Debt management was a priority for the government and Mr Yan said he was relieved Moody's had kept the NT at a stable credit rating.
He said public debt growth was back on a sustainable trajectory, with the government reducing it by 18 per cent.
The budget papers show NT net debt at $12.55 billion for 2026/27, the deficit at $1.06 billion, revenue at $10.7 billion, expenditure at $12.78 billion, GST revenue at $5.1 billion, economic growth at 5.8 per cent and unemployment at 5.2 per cent.
The budget was expected to return to near surplus by 2029/30 with a negative $5 million result.
The budget includes hiring more than 150 new police officers and 100 additional police public safety officers to strengthen frontline policing and 150 extra corrections officers to improve prison operations.
The government is allocating $426 million for infrastructure upgrades for police stations and corrections facilities and $74 million for domestic violence prevention and victim support services.
The corrections budget for 2026/27 is $525 million, aiming to expand capacity by 40 per cent to 1535 prison beds.
A revised corrections infrastructure plan includes two prisoner work camps in Darwin and Katherine with 192 beds and 198 beds, respectively.
The NT government has already delivered an extra 1092 prison beds since late 2024.
Legal and Indigenous advocacy groups have criticised the tough-on-crime approach, saying locking people up will not address the root causes of crime, and instead call for more money for rehabilitation programs.
The budget includes an additional $60 million investment in rebuilding and strengthening roads, including a $30.5 million rapid repair package to restore roads damaged during recent severe weather events.
As part of the budget, the NT government will extend two residential property incentives for another year.
A $50,000 grant for first home buyers and $30,000 grant for existing buyers will be available until September 30, 2027.
Labor's Selena Uibo said the budget was extremely disappointing in failing to outline a pathway for growth in the territory economy.
"We have seen the greatest windfall in Commonwealth revenue to any territory treasurer in the territory's history,'' the opposition leadersaid.
"Yet we have seen the continuation of debt blowout under Bill Yan and the CLP government."
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