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 last year'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 a statement ahead of the budget delivery.
"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 in a budget briefing.
Debt management was a priority for the government and Mr Yan said he was relieved Moodys had kept the NT at a stable credit rating.
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.
Mr Yan warned of economic fall-out from the Middle East war leading to further inflation and interest rate rises.
The budget includes hiring more than 150 new police officers and 100 new police public safety officers to strengthen frontline policing and 150 new 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 won't address the root causes of crime.
Instead, they want more money for rehabilitation programs.
NT roads have been badly damaged by heavy rain and storm events in recent months, with whole sections washed away and a big pothole repair job needed across the territory.
The budget includes an additional $60 million investment in rebuilding and strengthening roads such as shoulder widening, asphalt resurfacing and replacing ageing culverts.
It includes a $30.5 million rapid repair package to restore roads damaged during recent severe weather events.
Mr Yan, who is also the infrastructure minister, said the additional funding would extend the life of the road network and ensure it continued to support economic growth and connectivity across the territory.
"Territorians have endured one of the toughest wet seasons on record and this announcement will fast track damage repair and deliver the safer roads thousands of motorists rely on every day."
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.
"Our new home grants are the most generous in Australia because we want more Territorians to put down roots as more land is released across the NT," Mr Yan said.
