Press Release - October 19th, 2009
R(16)292
GNWT Fiscal Plan Continues Support for Northerners
YELLOWKNIFE (October 19) -- Minister of Finance J. Michael Miltenberger confirmed that the Government will continue to provide substantial support to the NWT economy during the downturn, despite a forecast drop in tax revenues.
In a statement to the Legislative Assembly Monday, the Finance Minister advised Northerners that the government's fiscal actions have made a difference in the territory's economy. "Despite the prospect of lower corporate income tax revenues in 2009-10, we made the decision, early into the current fiscal year, to stay the course on spending and investment," said Miltenberger.
"This fiscal year we will invest a record $484 million in infrastructure, including the stimulus funding received from the federal government. Approximately 75 per cent of the projects in the 2009-10 Capital Plan are currently underway. Our increased capital spending will be responsible for about 1,000 person years of employment over this year and next."
On Friday, the Finance Minister presented the Government's 2010-11 Capital Estimates, which propose $222 million in capital spending next year. Together, the 2009-10 and 2010-11 Capital Plans represent the largest planned investment in community and government infrastructure in the history of the GNWT. This infrastructure spending will create significant contract and employment opportunities and address infrastructure needs across the NWT - for schools, health facilities, highways, airports and other vital projects.
Minister Miltenberger did warn that corporate income tax revenues in 2009 could be $32 million lower than the amount forecast in the Government's Budget last February. Miltenberger added that the revenue outlook for 2010 is also uncertain, but that "our decisions must also be based on what is in the best interests of NWT residents, given that our fiscal situation is sound and that we have some latitude for risk."
MLAs will review the 2010-11 Capital Estimates during the current Session of the Legislative Assembly. The 2010-11 Budget will be presented during the Winter Session of the Assembly, scheduled to begin in late January.
For more information, contact:
Andrew Matthews
Communications Officer
Office of the Premier & Executive Council
669-2302
