Jeff Colbourne
Northern News Services

NNSL (Sep 23/98) - After three years of penny-pinching and public service downsizing, Finance Minister John Todd is now predicting a budget surplus for the second consecutive year.

And better yet, this surplus, he said, will completely pay off the government's accumulated debt.

This is a major accomplishment, Todd says. It will put both new governments on strong financial footing after division.

"I hope at the end of the day that people will now see that what we've done is provided a sound fiscal base for the two new governments and the new generations won't inherit any debt," he said on Monday.

"In the long run that will affect the way the two new government's can operate. It gives them a lot of freedom. They don't have to worry about paying down debt."

Todd was reluctant to give a number right now as to how much the surplus will be.

"We might get some additional dollars from the federal government because of the fact that our statistics have come up and there may be some retro-activity in that," said Todd.

"If it does, we will get some one-time additional dollars plus I think there will be a small surplus based upon the fact that we've managed the government's finances a little more effectively."

Whatever extra money is brought in, Todd is firm in paying off the accumulated debt as the first priority which was somewhere around the $20 to $30 million range. The government projected in its spring budget the GNWT's accumulated deficit to be nearly $28 million, down from $41 million two years ago.

Any surplus balance after the debt is taken care of may be spent on areas most in need now like health, education and housing.

Despite the forecasted windfall, Northerners should not expect any additional government spending soon other than on current priorities. "I think it would be foolish at this late stage of the game," said Todd.

Balancing the books is part of an overall plan by Todd get two new agreements from the federal government for the territories. He hopes to sign off those agreements with the federal finance minister, Paul Martin next month.

"We're real close to signing off those two agreements which are good agreements," said Todd.

"The two new formulas has enough money to continue with the level of services we currently provide."