 | E-mail this story |  | Write letter to editor |  | Order a classified ad |
| E-mail this story | | Write letter to editor | | Order a classified ad |
 Assistant deputy minister of finance Victor Tootoo, left, and finance minister Kelvin Ng address the media during the Government of Nunavut's fifth budget lockup. - Chris Puglia/NNSL photo |
Chris Puglia
Northern News Services
Budget documents indicate that last year the GN had $97 million in the bank thanks mainly to understaffed departments.
This year the surplus fell to $14.2 million due to an $82-million deficit.
The news is even worse for the 2004-05 fiscal projections.
The GN predicts only $2.7 million of the surplus will remain following an $11.6-million deficit.
Finance Minister Kelvin Ng said the surplus was used to invest in a number of capital projects.
The elimination of those one-time expenditures account for the slowed rate of fall towards the red projected for the next fiscal year.
As well, the territory received an additional $55 million in federal transfer money this year.
However, Ng said the GN requires the federal government to increase their investment in the territory to maintain financial sustainability.
"We're working hard for the federal government to come to the table in a whole lot of areas," said Ng.
One of those areas is a review of the formula financing, which determines how much Nunavut receives in federal transfer money annually.
Ng said the prime minister has indicated there is a need to review funding to the territory too.
Without that review and a commitment to increase federal transfer payments, which make up 90 per cent of territorial funding, Ng said territorial spending will not be sustainable.
"The reality is we can't keep operating on the resources we have now," the minster said.
Ng said the next government may have some tough choices on their hands if they want to stay out of the red.
A program review is underway that will assist future governments in prioritizing spending if funding falls short.
"We have to make sure we don't incur significant debt or place an unrealistic burden on future legislatures," said Ng.
"I think our financial situation is still sound.
"In the future I would say we have to be cautious.
"We have a lot of needs out there and we have to try and meet those needs and sometimes we have to meet those needs at a detriment to our fiscal situation."
