The Northwest Territories’ finance minister has tabled the government’s interim budget for the first three months of the 2024-25 fiscal year.
Caroline Wawzonek said the budget will fund territorial programs and services for the first quarter, giving the 20th Assembly time to complete its transition and set priorities before producing a full budget.
“I am pleased that this Legislative Assembly has chosen to take the time to do this right,” she told the legislature, adding it would mean the new priorities “can be reflected in financial plans going forward.”
The interim budget estimates more than $782 million in spending on government operations between April 1 and June 30. That includes more than $201 million for health and social services, more than $110 million for the Department of Infrastructure, and nearly $128 million for the Department of Education, Culture and Employment.
Government borrowing is estimated to be more than $1.6 billion by the end of March 2025.
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Promise of fiscal responsibility
Wawzonek said on Wednesday that flooding, drought, wildfires and the Covid-19 pandemic have negatively impacted the territory’s finances. The minister said in September that the NWT’s budgeted operating surplus for 2023-24 was expected to drop by $173 million, to $5 million, because of wildfire and evacuation costs.
But Wawzonek said this week that the NWT government has taken a number of fiscal sustainability measures.
She pointed to previous decisions to cap spending in the capital budget to $260 million annually, require that consolidated debt be at least $120 million below the federal borrowing limit, and launch a “government renewal” strategy that involves carefully examining how each department spends its money.
“We are taking a careful look at the government’s own-source revenues balanced against the implications for the costs of living and doing business, and on the economy in general,” she said.
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The territory’s $2.2-billion 2023-24 budget projected the NWT would end the fiscal year with total debt of about $1.5 billion, $300 million shy of the federally imposed debt ceiling of $1.8 billion.
Minister dismisses concerns about cuts, layoffs
Richard Edjericon, the MLA for Tu Nedhé-Wiilideh, questioned the territory’s financial outlook on Wednesday and asked whether it might lead to less government investment in his district.
“Across my riding there are critical problems with housing, home ownership repairs, infrastructure and access to services,” he said.
“My people can’t afford to lose out on support they have waited desperately for.”
Wawzonek said cuts to programs and services were the last thing the government would consider. Rather, she said, improving the territory’s finances would involve spending money more wisely.
“There’s a lot that we can do to improve our efficiency, to avoid redundancy,” she said.
“Significant work has been done already and it has laid ourselves a path, and it’s our opportunity to take it.”
Wawzonek said the current approach to fiscal responsibility would not mean layoffs in the public service.
