YELLOWKNIFE (February 17, 2016) – Minister of Finance Robert C. McLeod issued the following statement on the partial restoration of Territorial Formula Funding announced by the Government of Canada today:

“The Government of the Northwest Territories (GNWT) welcomes the announcement yesterday from Minister of Finance Morneau that the Government of Canada will introduce legislative amendments to improve the stability and predictability of federal Territorial Formula Financing (TFF) payments to the three northern territories. The decision addresses an issue first identified in a meeting between Premier McLeod and Minister Morneau last December, when revisions to Statistics Canada data were announced that would have led to a reduction of approximately $34 million from the 2015-16 funding transferred to the GNWT.

“The GNWT appreciates the willingness of the Government of Canada to work collaboratively with the territories to address an issue of mutual importance. Greater certainty and predictability around the TFF will support better planning as the GNWT prepares to finalize its mandate and begin the development of business plans and the 2016-17 budgeting process.

“Yesterday’s announcement will see approximately $24 million of the original $34 million in reductions restored to the TFF. While this is welcome news, the GNWT had already included partial restoration of the TFF in its fiscal planning and still faces a situation where its expenditures are growing faster than its revenues. We will still need to exercise fiscal discipline as a government, if we are going to be able to avoid deficit budgets and a potentially unsustainable debt load in future years.”