Nunavut Government will spend some of surplus
Doug Ashbury
Northern News Services
Iqaluit (Oct 30/00) - Nunavut Government will be seeing fiscal red by March.
The territory is heading for a $31.9-million operating deficit for the 2000-2001 year, says Nunavut Finance Minister Kelvin Ng.
But that deficit will be covered by government's accumulated surplus, he adds.
For the year ended March 31, 2000, the GN has an accumulated surplus of $63 million.
Ng estimates overall 2000-01 revenues will come in at $635.6 million, while total spending will be $667.5 million. Based on mid-year projects, Nunavut will get 91 per cent of its revenues from Ottawa.
Part of a statement by Ng, read last week at the legislature in Iqaluit, said, "I also would like to note that the GN continues to face a number of additional expenditure pressures, including higher operating costs as a result of rising fuel prices, information technology needs, and ongoing union negotiations."
The territorial government, which buys fuel in bulk and distributes it to the communities, last week raised the per litre cost 13.9 cents with a 98.9 cent-a-litre ceiling for heating, diesel, jet fuel and gasoline. The ceiling does not apply to retail gasoline sales in Iqaluit.
On union activities, negotiations between the Nunavut Government and the Nunavut Employees Union have gone four rounds without a tentative deal being reached. The union will hold a strike vote and results will be Nov. 9.
Ng says 2000-01 revenues are expected to be $3 million lower -- the territorial formula financing grant is expected to be $2 million less while other federal transfers will decrease by $1 million.
Expenditures should increase, partly because of a $17.2-million increase in operations and maintenance costs. Lease obligations and the recent teachers' union settlement were cited.
