Debt ceiling increasing to $1.3 billion
MP, MLAs react to Tuesday's federal budget
Shane Magee
Northern News Services
Wednesday, April 22, 2015
SOMBA K'E/YELLOWKNIFE
The Northwest Territories' debt ceiling will jump to $1.3 billion, the federal government revealed yesterday in its budget, falling short of the increase sought by the territorial government.
The GNWT asked the federal government to increase the limit to $1.8 billion from the current $800 million to allow it to borrow money for infrastructure projects including the completion of the Mackenzie Valley Highway. The limit increase followed a review of the territory's "economic and fiscal outlooks," a budget document states.
The limit was last raised from $575 million in 2012.
"I'm really glad to see that the borrowing limit is going up," said NWT MP Dennis Bevington.
Northwest Territories Premier Bob McLeod and territorial Finance Minister Michael Miltenberger were unavailable to comment Tuesday afternoon. They've previously said the increase will address the territory's $3 billion infrastructure deficit. Spending on renewable energy aimed at reducing the cost of living in the territory depends on the increase, Miltenberger has said.
Range Lake MLA Daryl Dolynny reacted with a twinge of disappointment just after hearing the news.
"I'm not sure if I'm pleased that we're the assembly that has (increased by) almost four times our debt load," Dolynny said. "I'm not sure if I'm very proud of that accolade. That being said, I'm concerned about how we're going to spend that money."
Frame Lake MLA Wendy Bisaro said she's glad the territory finally knows the outcome of its request.
"I am pleased to a certain extent because we have some huge infrastructure projects which we haven't even been able to consider because our limit was too low," she said. "So in that respect it's good, but I have serious concerns about how we're going to spend that money."
The federal budget introduced Tuesday by federal Finance Minister Joe Oliver projects a surplus of $1.4 billion in the 2015-2016
fiscal year. It's the Conservatives' last budget before the fall federal election. Bevington said he was disappointed not to see money allocated for climate change mitigation or other projects for people in the North.
"(The budget) means no real change in programming like Nutrition North that would help with the cost of living, there's no increase in the Northern Living Allowance tax deduction which is sorely needed," he said.
The budget does include $34 million over the next five years to continue meteorological and navigational warning services in the Arctic.
The budget still needs to pass through Parliament, where the Conservatives hold a majority.
