Yellowknife — February 22, 2022
Today, Finance Minister Caroline Wawzonek released the 2022-23 Budget, the third budget of the 19th Legislative Assembly.
Total revenues of $2.3 billion are expected in 2022‑23 and total expenditures of $2.06 billion, which include spending for programs and services and infrastructure contributions. The 2022‑23 surplus is forecasted to be $131 million.
Revised estimates for 2021-22 project a $28 million operating surplus, lower than forecast in the 2021-22 Budget mainly due to increased expenditures related to the pandemic and flooding in Fort Simpson and Jean Marie River.
Budget 2022-23 proposes $43 million, or 2 per cent, in increased spending compared to Budget 2021-22: $86 million to enhance existing programs, $9 million in initiatives to achieve the government’s mandate, and $2 million in amortization offset by $54 million programs that are ending.
There are no new taxes announced in Budget 2022. As previously announced, the carbon tax will increase to $50 per tonne of carbon dioxide equivalent emissions on July 1, 2022, equivalent to 2.4 cents per litre of gasoline. Increased revenue from carbon pricing will be recycled to NWT residents and businesses including an increase to the Cost of Living Offset to $260 per adult and $300 per child.
Quote:
“The themes of this budget are consistency and patience. Instead of flashy spending we offer stability in a time of uncertainty. We are continuing the work we started in our first two budgets and are finding comfort in our willingness to take measured risks. By supporting and encouraging innovation within the public service, we are helping to build a culture of collaboration and value-driven efficiency in the delivery of programs and services. This will allow us to pursue creative and innovative ways to help build a strong economic future.”
- Caroline Wawzonek, Minister of Finance
Quick Facts:
- Budget 2022-23 proposes $43 million, or 2 per cent, in increased spending compared to Budget 2021-22: $86 million to enhance existing programs, $9 million in initiatives, and $2 million in amortization offset by $54 million programs that are ending.
- Budget 2022-23 forecasts an operating surplus of $131 million in 2022‑23; an improvement over the $28 million surplus projected for 2021‑22.
- Cash from the operating surplus and borrowing is used to help pay for capital spending. Borrowing is projected to increase by $241 million in 2022-23 to $1.696 billion in total debt by the end of the fiscal year.
- Operating deficits in 2018-19 and 2019-20 and low operating surpluses in 2020-21 and projected for 2021-22 have resulted in increased borrowing. However, the GNWT’s debt level remains affordable and interest rates remain low.
Relevant Links:
For media requests, please contact:
Todd Sasaki
Manager, Public Affairs and Communications
Department of Finance
Government of the Northwest Territories
Tel: (867) 767-9140 ext. 15015
Email: todd_sasaki@gov.nt.ca