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Save money now, spend later Finance minister holds off on spending to save for future infrastructure projectsDanielle Sachs Northern News Services Published Friday, May 25, 2012
Wearing sturdy, worn-in yet shined footwear, the minister presented the 2012-2013 budget in front of a crowded house and public gallery yesterday.
It was referred to as a "status quo" budget by Miltenberger. At $1.44 billion dollars, the budget aims to maintain services and programs currently offered, and keep major infrastructure spending for the last two budgets in the four-year budget cycle.
Miltenberger said the government needs to replenish its cash reserves before it can add to spending.
With a surplus of $74 million, this is the first surplus budget in five years, but total debt is expected to reach $656 million in March 2013. That's up $140.2 million from last year.
While the borrowing limit has been set at $800 million, Miltenberger said the GNWT is not in a position to borrow for operations and expenditures.
"We use the borrowing limit to make strategic investments," he said.
This is the first budget of the 17th legislative assembly and represents an increase of 3.7 per cent in expenditures.
There won't be any new taxes. However, consistent with the 2010-2011 budget, property tax mill rates, liquor mark-ups and a number of fees were adjusted for inflation.
'We can maintain the things we have now, but if you want to add programs you start having to make difficult choices," said Miltenberger.
There are limited infrastructure investments, at $124.2 million, that were approved in December 2011 that will still continue.
The major spending in the 2012-2013 budget is towards social programs. Some $818 million is budgeted for education, health care, social services, housing, policing and corrections.
Another $1.2 million is going into a program to support the transition between public and market rentals.
Another million is going to fund the previously announced new public housing rent scale.
Mayor Gord Van Tighem was in the public gallery watching the address. Although Yellowknife wasn't specifically mentioned in the budget, Van Tighem said that's something he's used to.
"In the 12 budgets I've sat through the highest Yellowknife was ever mentioned was three," he said.
Van Tighem said overall, he was happy with the budget. "What affects the territory affects us," he said.
"It's a good budget, but it's a boring budget," he added.
Others were disappointed with the lack of environmental initiatives.
"It's quite disappointing for me," said Weledeh MLA Bob Bromley. "Without a renewable energy strategy (the) cost of living will continue to rise."
He also expressed dismay that as development and exports continue to rise the Heritage Fund remains empty.
Christine Wenman, from Ecology North, agreed.
"The need there is really substantial," she said.
"We need to be looking at long-term strategies to make things more affordable."
2012 Budget
Budget by the numbers
Source: Department of Finance
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