As the NWT government prepares its next budget, it says residents are concerned with growing debt and communities want more collaboration on spending decisions.
Each year, the territory asks residents to provide input on the upcoming budget through a survey and holds budget engagement sessions with Indigenous and community governments, businesses, industry and non-governmental organizations.
The NWT government released a report last week summarizing feedback from these “budget dialogues” for the 2026-27 fiscal year.
A key theme the report highlights is widespread concern about the GNWT’s growing debt and perceived lack of a clear strategy to manage it.
Earlier this year, the federal government increased the NWT’s borrowing limit to $3.1 billion as the territory neared its previous debt ceiling of $1.8 billion.
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Last month, finance minister Caroline Wawzonek said the NWT’s projected operating surplus of $170 million had dropped to $16 million due to added costs and economic uncertainty.
Wawzonek also said cabinet planned to modify its fiscal strategy, which had aimed to find an additional $150 million a year through a combination of spending cuts and increased revenues, among other goals. The NWT’s previous two budgets had failed to meet that target.
Instead, Wawzonek said the NWT will now focus on “investing in the stability and resilience of the territory,” which she acknowledged will increase rather than pay off debt.
Redefining Arctic security
Other themes outlined in the 2026-27 budget dialogues report include calls for the territory to diversify beyond mining and leverage federal funding, as well as a desire for more collaborative budget planning with Indigenous and community governments and greater transparency on funding allocation.
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During engagement sessions, community leaders emphasized the need to redefine Arctic security to include local infrastructure, housing and services, highlighting the Mackenzie Valley Highway, Dempster Highway and a winter road from Inuvik to Fort Good Hope as top priorities. They said Yellowknife and Inuvik’s designations as northern operational support hubs are key to leveraging federal funding.
Leaders also stressed the need to balance development with environmental stewardship and traditional land use.
Asked about areas where they would spend in the 2026-27 budget, the majority of the 211 survey respondents prioritized healthcare, housing and economic development.
Regarding areas where they wanted to see spending cut, respondents overwhelmingly expressed concern about the “bloated” public service and recommended reducing senior management.
Survey respondents also suggested the GNWT reduce the use of consultants, reform medical travel, decrease reliance on agency nurses, reassess housing eligibility and maintenance, focus education spending on K-12 outcomes, and limit subsidies to the resource industry.
At public engagement sessions, residents suggested introducing a territorial sales tax and progressive taxation targeting high earners, as well as increasing the population of Yellowknife as possible new revenue sources.
Some of those ideas were also suggested by residents ahead of the 2025-26 budget.
The NWT government said it will consider the public feedback documented in the report while developing its 2026-27 budget and broader fiscal strategy for the 20th Legislative Assembly.
