NT welcomes $5bn for northern development

The Northern Territory government has welcomed the federal budget's allocation of funds for developing northern Australia and supporting small businesses.

Chief Minister Adam Giles says the budget recognises that northern infrastructure development is key to Australia's economic future.

Increasing private sector investment in northern infrastructure is "exactly what my government has been lobbying hard for", Mr Giles said on Tuesday night.

He said he was "especially keen" to see how the loan scheme may support a possible rail corridor between Tennant Creek and Mount Isa.

He said that would be a practical demonstration of the government's commitment to developing the north, as the delivery date for the Northern Australia white paper nears.

Small businesses making up the majority of the NT's commercial community, would be pleased with the $5.5 billion jobs and small business package, Mr Giles said.

Farmers would also welcome $70 million allocated to claim accelerated depreciation for water facilities, fodder storage and fencing.

But Mr Giles said he was unhappy no more funds were allocated for the Palmerston Regional Hospital, which the Commonwealth is already funding to the tune of $100 million against the NT's $40 million.

"It is disappointing ... but this was not unexpected," he said.