The N.W.T. government is treading carefully into the 2018-19 fiscal year, making modest investments in programs and services as a result of a $53 million year-over-year revenue decline.
Finance Minister Robert C. McLeod highlighted the need for “balance” as he prepared to table the proposed new budget Thursday morning.
“Our projected revenues haven’t been as high as we had hoped,” said McLeod. “There’s less money for operating expenses, new investment in infrastructure and other priorities, and paying back debt.”
Revenues are expected to come in at $1.749 billion, with expenses estimated to be $1.713 billion. After accounting for adjustments and capital costs, the government is expecting a surplus of $2 million.
The revenue decline is largely a result of lower-than-expected mining royalties, as well as lower income tax revenues and the end of some federal funding.
Since the start of the 18th Legislative Assembly in 2016, the government says revenues have declined by $84 million.
And, for the first time, the government’s total debt has surpassed $1 billion — which includes short-term and long-term debt. The N.W.T.’s federal borrowing limit is $1.3 billion.
However, the finance minister expects things to improve next year.
Property taxes, a possible land transfer tax and job opportunities are some of the ways McLeod hopes the government will be able to boost funds.
McLeod added reductions made in the last few budgets have positioned the government well to deal with its revenue challenges this year.
“In one way I see this budget as a ‘what if’ budget,” said McLeod.
“If we hadn’t made the difficult expenditure decisions in the first two budgets, we would be forced to make serious changes in this budget to avoid the short-term borrowing trap without the advantage of careful…