Yellowknife — March 3, 2025
The Government of the Northwest Territories (GNWT) has received approval from the Government of Canada to increase its federally imposed borrowing limit from $1.8 billion to $3.1 billion.
This adjustment to the limit will allow the GNWT to increase the amount of money it borrows if necessary. This flexibility strengthens the GNWT’s ability to respond to expenditure shocks, such as effects of extreme weather events like floods and wildfires, and address implications of potential US tariffs on the Northwest Territories’ economy. The increase also ensures that the GNWT has the fiscal capacity and flexibility to continue to support economic growth through much needed investments in infrastructure.
However, the GNWT remains committed to the responsible borrowing guidelines in the Fiscal Responsibility Policy, ensuring that longer term borrowing is used only for infrastructure investments to deliver programs and services for Northerners and to support the economy. The goals outlined within Restoring Balance continue to provide the foundation for pursuing long-term fiscal sustainability. The GNWT’s debt remains affordable (debt servicing payments are less than 5% of total revenue) and it has maintained high credit ratings from both Fitch and Moody’s Investor Services.
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“This increase provides the Government of the Northwest Territories with the flexibility needed to pursue new opportunities for northerners and respond to fiscal shocks. We will continue to work closely with the Government of Canada and other partners to maximize investments that support economic resilience and community stability while we work collectively to achieve long-term fiscal sustainability.”
- Caroline Wawzonek, Minister of Finance
Quick facts
- GNWT borrowing is used for daily cash management and infrastructure investments to deliver government programs and services and support the economy.
- The borrowing limits of all three territories are set by regulations under the respective territorial acts. Requests for increases to these borrowing limits are submitted to the federal government. This is done periodically by each government.
- The GNWT’s borrowing limit was last increased in 2020 when it increased from $1.3 billion to $1.8 billion.
Related links
For media requests, please contact:
Beau Stobbs
Senior Communications Officer
Department of Finance
Government of the Northwest Territories
EIA_FINComms@gov.nt.ca