Yellowknife — February 25, 2020
Finance Minister Caroline Wawzonek released the Government of the Northwest Territories’ 2020-21 Budget, the first budget of the 19th Legislative Assembly.
Total revenues of $2.19 billion are expected in 2020-21, along with total expenditures of $1.98 billion, which include departmental spending, infrastructure contributions, and other items. The 2020-21 surplus is forecast to be $203 million.
Revised estimates project a 2019‑20 deficit of $70 million. Projected surpluses in the medium-term outlook are anticipated to decline to $3 million in 2023‑24.
Budget 2020 proposes a spending increase of $94 million compared to Budget 2019. This includes $61 million for program enhancements, of which $39 million reflects collective bargaining increases for departments and health authorities, and $6 million for the continued implementation of initiatives from the 18th Assembly. Another $40 million in new spending is supported by $29 million of federal transfers. Programs concluding offset new expenditures by $15 million.
There are no new taxes in Budget 2020. Some fees and taxes will continue to be indexed to inflation, in keeping with the GNWT’s policy of doing so where practicable. As previously announced, the federal carbon tax will increase to $30 per tonne from $20 on July 1, 2020. Revenue from carbon pricing will continue to be recycled to NWT residents and businesses.
Quote:
“Budget 2020 represents the first step in our plan to advance the 22 priorities identified by the 19th Assembly. We see today’s budget as a cautious and optimistic step forward to renew our commitment to program evaluation and better planning so that we can deliver essential programs and services more effectively. We are committed to an approach that ensures we are getting value for money while building relationships with other governments and stakeholders towards a prosperous and sustainable Northwest Territories.”
- Caroline Wawzonek, Minister of Finance
Quick Facts:
- Budget 2020 forecasts an operating surplus of $203 million after a $70 million projected deficit in 2019‑20.
- Budget 2020 will see $94 million in increased spending compared to Budget 2019: $6 million to fund ongoing measures from the 18th Legislative Assembly; $61 million to enhance or maintain existing programs; $2 million in amortization and $40 million for other spending adjustments, supported by federal transfers and $15 million in savings.
- Debt will rise because capital investment is funded from the surplus and borrowing. Debt is expected to exceed the federally imposed borrowing limit of $1.3 billion by 2021-22. The GNWT’s debt level remains affordable.
Relevant Links:
Media Contact:
Todd Sasaki
Media and Communications Coordinator
Government of the Northwest Territories
Tel: (867) 767-9140 ext. 15015
Email: todd_sasaki@gov.nt.ca
