Yellowknife (Oct 18/04) - The NWT's fiscal situation appears rosier than indicated during budget discussions last March, says Finance Minister Floyd Roland.

The minister told the legislative assembly Thursday that the operating deficit for the 2003/2004 fiscal year was $13 million less than the $78 million predicted earlier.

More money from Ottawa this year, and more to come after the two governments hammer out a new formula financing deal will go along way to improve the territory's financial outlook, said Roland.

"Our fiscal situation is improving," said Roland.

"We're waiting for the next First Minister's meeting (Oct. 26) to confirm exactly what amount of money we'll be getting from Ottawa.

"If we get favourable treatment, we get more money to the North, which means we can increase our program spending."

Nonetheless, there is still some belt tightening to do, said Roland. The territorial government owes Ottawa $300 million for overpayment on corporate taxes, due by 2006/2007.

Sahtu MLA Norman Yakeleya said he is impressed by the finance minister's performance so far.

He says cabinet overall has been getting the message from other MLAs that they need to be more resolute when dealing with Ottawa.

"It's a tough balancing act, but I think we can do it," said Yakeleya. "It's a crying shame that this government here is allowing the federal government to take millions in resources and revenue out, but I think (Roland) is on to something good."