Borrowing Limit Raised to $800 Million
Yellowknife (March 15, 2012) – The federally imposed borrowing limit has been raised to $800 million from $575 million.
The increase represents the successful discussions between the federal Minister of Finance, the Honourable James Flaherty, and the three territorial Ministers of Finance about the definition and adequacy of the territorial borrowing limits.“The new limit will help the GNWT to fund infrastructure priorities identified by the 17th Legislative Assembly and still manage its finances responsibly,” Minister Michael Miltenberger said. “In these times of fiscal uncertainty with very real risks posed by external economic threats and internal cost pressures, the extra buffer between the borrowing limit and GNWT debt is welcome. I would like to thank Minister Flaherty for recognizing our ability to manage the increased borrowing capacity. This concludes one of our government’s top federal-territorial priorities.”
The increased borrowing limit does not change the GNWT’s current fiscal strategy, which is governed by the Fiscal Responsibility Policy. That strategy is to pay down increased short-term borrowing incurred to support the NWT economy over the next two years. This will allow the GNWT to resume a more active infrastructure investment program in the last two years of the 17th Assembly while maintaining programs and services.
For more information, contact:
Office of the Premier/Cabinet
Government of the Northwest Territories
Phone: (867) 669-2302