Doug Ashbury
Northern News Services

NNSL (Nov 01/99) - With last year's deficit now larger than originally thought, NWT Finance Minister Charles Dent says it's even more important the territory gets resource royalty money.

The NWT is facing an accumulated deficit of $16 million this fiscal year and an accumulated deficit of $77 million and $166 million in fiscal years 2000-2001 and 2001-2002.

"First of all, I don't want to go over that $16 million (deficit). The real problem comes next year," Dent said.

"This new financial information emphasizes the need for the government to look hard at current-year spending and take steps to avoid incurring some of the $34-million deficit projected for this year," Dent said.

Against a backdrop of diamond and gas activity in the NWT, Dent also said, "These developments and their small impact on territorial revenues serve to bring home the fact that without access to some of the resource royalties (paid by companies to the federal government) and other development-related revenues, it will become increasingly challenging to adequately meet the need of NWT residents."

As for what raised last year's deficit, the GNWT cited extending pay equity settlements to non-union employees and revised health-care revenue from Ottawa for changing the fiscal picture.

Extending the settlement to include non-union employees (about $6 million) as well as an adjustment to the original $25 million amount, meant about $33 million for the settlement.

On health care, the GNWT said the revised estimates of revenue from the government of Canada fall under the non-insured health benefits agreement and the hospital care Indian and Inuit agreement. The GNWT has revised its estimates to reflect "more conservative estimates of what will be received under these agreements based on rejected and disputed claims covering the last four years. These claims are still under dispute."