Three Northern Territory Government members have been sacked from the Labor Caucus, after speaking out publicly about the Government's handling of the Territory's economic crisis.

Key points: The Chief Minister says the trio were sacked for "breaking the caucus values and standards"

The Chief Minister says the trio were sacked for "breaking the caucus values and standards" Ken Vowles, Jeff Collins and Scott McConnell had spoken out publicly about the Government's handling of the NT's economic crisis

Ken Vowles, Jeff Collins and Scott McConnell had spoken out publicly about the Government's handling of the NT's economic crisis Ken Vowles said the move was "an absolute bloody disgrace"

Aboriginal Affairs and Resources Minister Ken Vowles has been stripped of his portfolios.

Assistant Minister Jeff Collins and backbencher Scott McConnell were also booted from Caucus.

It comes after public criticism from the three MLAs this week about Labor's handling of the Territory's budget.

A damning audit released on Friday last week showed the Territory budget was in major structural deficit.

Northern Territory Chief Minister Michael Gunner confirmed the sackings, saying the trio was dismissed for "breaking the caucus values and standards signed up to at the beginning of our term".

Scott McConnell (left) and Jeff Collins (right) have been dumped from the Labor caucus. ( Supplied: Scott McConnell/Jeff Collins )

"Today I have advised Ken Vowles that he has been dismissed from the Cabinet for breaking Cabinet confidentiality," Mr Gunner stated.

"The Caucus has also dismissed Ken Vowles, Jeff Collins and Scott McConnell from the Caucus.

"Ken Vowles, Jeff Collins and Scott McConnell were dismissed for breaking the Caucus values and standards signed up to at the beginning of our term.

"When the Territory Labor Government was elected in 2016 we promised to put Territorians first by delivering jobs, putting kids at the centre of government and restoring trust.

"Unity of purpose is vital to government achieving these aims."

'A sad day for politics'

Mr Vowles held a press conference this afternoon, and said the move was "an absolute bloody disgrace".

"This is a sad day for politics," he said.

"We were elected to govern for the Northern Territory, not for ourselves.

"I have stood up many times for 18 months about the budget situation and nothing has improved.

"We saw the MYEFO, we have spent $354 million more than we thought we would.

"This is a disgrace. Territorians should be asking us what is your plan for the future."

Mr Collins said he received the news via a phone call earlier this afternoon.

"The Chief Minister moved a motion that the former primary industries minister Ken Vowles, myself and Scott McConnell be excluded from Caucus for the rest of the term," Mr Collins told the ABC.

"That motion was voted on before there was any debate or any chance to have a say, so yeah."

"I am officially no longer a member of the Labor Caucus in the Government."

Mr McConnell is yet to make a statement.

'Our budget situation is dire'

Yesterday, Mr Vowles was asked three times but did not offer his support to the Chief Minister.

"The Chief Minister is the Chief Minister … and we're all going to have a great Christmas," Mr Vowles told Mix 104.9.

"He's doing the best job he can in these times and I wish him well over Christmas."

Presenter Katie Woolf responded: "Doesn't sound like he's got your confidence."

"Well, hopefully he's having a great break because he does deserve it," Mr Vowles replied.

It followed a series of emails that were leaked to the media earlier this week, which revealed Mr Vowles told colleagues "the community has clearly lost faith in us".

"Colleagues, our budget situation is dire — our debt level is ridiculous for our population," Mr Vowles wrote.

"We need to re-evaluate every announcement, every commitment, because we need to make the hard decisions for the future of the Territory, not decisions to enhance our re-election prospects.

"The community have clearly lost faith in us and in our ability to manage the Territory and our budget for them."

'Beginning of the end': CLP

Independent MLA Terry Mills, who was rolled as Chief Minister in the previous Country Liberals government that was taken over by Adam Giles, said Mr Gunner's position was now untenable.

"This is the beginning of the end for the Gunner Government, resorting to throwing team members under the bus when really we're headed for a serious crisis," Mr Mills said.

"And the question is: does the Territory possess the political capital to face the challenge that is bearing down on us?"

Long-time independent MLA Gerry Wood said he felt like history was repeating itself.

"I've been through so many times since I've sat in Parliament where I've seen people who are in a particular party pack up and leave because of things they didn't agree with," he said.

He said Labor had dumped three talented members of government.

"I think it goes to show you there's a divide within the party between what I call people with good common sense who have got practical experience in life and other sections of the party which I think you might say are more the academic side of the government."

The Northern Territory Cattlemen's Association thanked Mr Vowles for his efforts as the Primary Industry and Resources Minister.

"The industry needs its minister to be a champion and at different times Minister Vowles did his best to argue the case on our behalf given the fine line he has to walk with agriculture and the resources sector — for that we are grateful," chief executive Ashley Manicaros said in a statement.