The Northwest Territories will now be able to receive more financial support from the Government of Canada.
The GNWT recently announced that the approval has been given by the federal government to increase the amount of money that the Territory can borrow. The limit has been raised form $1.8 billion to $3.1 billion.
The GNWT says that this will strengthen their ability to respond to sudden and unexpedited events such as weather disasters, and will also help to soften the impact of the current dispute between Canada and the United States regarding tariffs. It is also believed that this borrowing limit increase will be able to help the NWT to invest in its own economic growth by supporting Territorial investments.
The GNWT states that they will remain committed responsible spending by following the guidelines of the Fiscal Responsibility Policy. Caroline Wawzonek, the Minister of Finance, said that this increase provides the GNWT with “the flexibility needed to pursue new opportunities for northerners and respond to fiscal shocks. We will continue to work closely with the Government of Canada and other partners to maximize investments that support economic resilience and community stability while we work collectively to achieve long-term fiscal sustainability.”
The borrowing limit was last raised in 2020, where it was raised from $1.3 billion to $1.8 billion.
