This afternoon Canada’s Finance Minister Bill Morneau announced that the federal government will increase the NWT’s borrowing limit as part of its ongoing collaboration to support territorial governments.
At the request of the Government of the Northwest Territories, a review of the territory’s borrowing limit was undertaken.
According to the release made public Friday June 12th, the review took into consideration the NWT’s territorial government’s improved capacity to carry debt and changes in its economic and fiscal outlook since the last review in 2015.
Following that review, the federal government is now proposing that the borrowing limit be increased from the current level of $1.3 billion to $1.8 billion, upon Governor in Council approval.
The news was released jointly by Morneau, his territorial counterpart Caroline Wawzonek, and the MP for the NWT Michael McLeod.
The greater fiscal flexibility provided by the increase will aim to promote economic development and to advance related priorities in the Northwest Territories, including through strategic infrastructure investments.
The borrowing limit is inclusive of debts incurred by both the territorial government and the territorial Crown corporations.
The territorial government can borrow for territorial, municipal or local purposes up to the established limit without federal approval.
The current limit for the Northwest Territories was set at $1.3 billion on May 28, 2015, through Order in Council P.C. 2015-0644.