The Northern Territory's Treasurer Nicole Manison will fly to Canberra next week to ask Federal Treasurer Josh Frydenberg for a bail out.

NT's Government is borrowing to cover interest on previous debt, and to cover day-to-day operational costs such as public servants' wages.  Officials say this has led to a budget in "structural deficit".  The Territory's net debt has escalated from AU$1.7 Billion in 2016 to around $3 Billion this year.

The mid-year financial report said, "The deterioration in the Territory's operating balance from 2016-17, following reductions in GST revenue, has placed the Territory in the unsustainable position of needing to borrow to pay for recurrent activities and interest expenses."  It added, "Persistent operating deficits, compounded by further borrowing to fund capital expenditure, will result in a rapid escalation in government debt if left unchecked."