The Northern Territory government has announced on Tuesday a $5.1 billion for year 2010/11 with a cash deficit of $268 million with increased allocations for health, housing and education, even as mining industries and civil servants bear the brunt of the resulting deficit.

In a report by AAP, mining royalties will jump to 20 percent by July 1 as NT is looking for further funding of about $9.2 million and coupled with spending cuts measures that will see a hiring moratorium for two years in the public service.

State treasurer Delia Lawrie expressed confidence that the budget deficit will be decreased to $61 million by 2013/14 as the government will enforce strict financial management to restrict cash flow from its coffers.

She told AAP that the government has made deliberate efforts to go into deficit in order to secure NT jobs, vowing that "we will continue our sound management of the economy with a plan to step out of deficit in the forward years."

Amidst rigid measures, the NT budget this year is poised to deliver benefits to many more residents starting with the stamp duty exemption for senior citizens and pensioners amounting to $8,500 and equally benefitting first home buyers with grants of up to $28,000 and easier access to HomeStart NT by revising purchase price caps and income limits.

Also, the state's health services will enjoy an overall budget of $1.16 billion while the NT government is planning to spend $1.8 billion on infrastructure to create about 3600 jobs, at least until private investments remain low.

The government has earmarked a total of $725 million for public housing, government employee housing projects and to expedite land releases while every school across the NT will be given $300,000 upgrade budget each to constitute part of the whopping $886 million education budget allocation.

The NT government is also set to fund the Working Future policy with a record $980 million as the program aims to harness 20 town growths in delivering much improved health and education services and better environment to Aboriginal Territorians.

NT's economic managers are expecting to see economic recovery this year as growth projections of up to 3.6 percent is anticipated, though inflation is also expected to jump by a manageable 3.1 percent.