Doug Ashbury
Northern News Services

NNSL (Apr 26/99) - The fiscal window will be open for one year, according to Finance Minister Charles Dent.

In the coming fiscal year which ends March 31, 2000, government predicts revenues will be unchanged at $704 million but costs will come in at $742 million.

To keep the GNWT on an even keel, government will use money left over from last year's budget to erase the deficit.

Over the next 12 months, the NWT will have to find ways to increase revenues if the same level of service is to be delivered in fiscal 2000-01.

"If we don't find more revenues, we may have no choice but to cut services or capital spending in the next year's budget," Dent said in his inaugural budget address last Monday.

Whenever government faces the need for more revenue "one of the issues is raising taxes," Gerald Avery, managing partner with accounting firm Avery, Cooper & Co., said.

The 1999-2000 budget does not raise taxes, Avery adds. It remains to be seen if such a move will be needed a year from now.

The NWT Chamber of Commerce expressed disappointment that the budget is not balanced.

But overall, the NWT Chamber of Commerce supports the budget.

"There is some concern amongst the 1,200 member business that using the full amount of surplus may cause the government difficulty next year, but the chamber recognizes the minister intends to take steps to address this urgent situation," the chamber said in a release.

"In soaking up the $34-million surplus we have removed the financial cushion we previously enjoyed."

This move could carry "enormous" implications and Dent has a challenging time ahead, the chamber said.

The chamber also applauds any move by government to capture more of the royalty money paid to the federal government by non-renewable resource companies operating in the NWT.

Another part of the equation affecting the fiscal picture is the loss of population. The combined NWT experienced a drop of 893 people from 1996 to 1998. This lowers the amount of money the North gets from Ottawa under the formula financing grant. It also lowers territorial income tax revenue.

To increase revenues, government will continue to press Ottawa for more control over its non-renewable resources.

Full budget details are outlined in the 1999-2000 main estimates.

The 1999-2000 main estimates cover revenues and expenditures to March 31, 2000 -- a small surplus of $284,00 is predicted for March 31, 2000 -- as well as show financial information from the prior year.

The surplus for 1998-99 was $61.7 million with 56 per cent going to the new Western territory and 46 per cent to Nunavut.

At budget time 1998-99, a $28-million debt was anticipated.

"It looked like both the NWT and Nunavut would start out in the red. But because of favourable one-time adjustment to the formula financing grant from Canada, based on revised NWT population estimates, we enjoyed a forecasted $61.7- million accumulated surplus as of March 31, 1999," Dent said.

Dent, in his budget address, said the Western NWT stands at a crossroads.

"Down one path lies continued, no increased financial dependence on federal transfer payments. Down the other path lies increased financial independence and the responsibility that goes with that," he said.

The expenditures of $742 million, "will consume our accumulated surplus and leave us with neither an accumulated surplus nor deficit by the end of 1999-2000," Dent said.

In fiscal 1999-2000, 81.2 per cent of what it takes to run the Western NWT will come from federal grant money.

Some 13.24 per cent of the estimated $708-million revenue is to come from taxation. The rest of the revenue will come from general revenues, other recoverables and capital recoveries.