NT hit with $2 billion GST cut: treasurer

The Northern Territory government's election promise to balance the books by 2019-20 is looking less and less likely after it was hit with a "two billion-dollar revenue cut".

The Commonwealth Grants Commission released its annual GST distribution figures on Friday as the nation's treasurers met in Canberra.

NT Treasurer Nicole Manison said with 50 per cent of the Territory's revenue coming from the GST, the consequences for the May 2 budget will be devastating.

"This is a massive blow for our budget and unprecedented in the Territory's history," Ms Manison said.

"Over the next four years, around $2 billion dollars in revenue will be cut."

She said the cuts are roughly equivalent to 5000 teachers or nurses per year.

"Conditions we have inherited have created the perfect storm - a combination of slowing population growth, a reduction in the GST relativity from 5.4 per cent to 4.7 per cent, and a smaller GST pool combining to smash our share of the GST," she said.

In an urgently called meeting with federal Treasurer Scott Morrison, Ms Manison said she delivered a blunt assessment of the changes.

"He has taken those concerns on board and has agreed to continue working together," she said.

The NT economy is already facing considerable challenges as the multibillion-dollar Inpex LNG project winds down.

"We will continue to invest heavily in infrastructure, support jobs, encourage private investment and deliver crucial core services to Territorians," Ms Manison said.

ESTIMATED GST REDUCTIONS OVER THE NEXT FOUR YEARS:

* 2017/18 - $385 million

* 2018/19 - $434 million

* 2019/20 - $533 million

* 2020/21 - $570 million