N.W.T. government reins in spending, projects surplus in 2016/17 budget

The N.W.T. governmentis reining in spending, saying this year's budget will help prevent the territory from going into a deficit.

The territorial government previously said it needed to cut and save $150 million to prevent it from going into a deficit in the next three to four years. This budget will get ithalfway there finding $68 million in savings and revenues.

Having recently announced a possible 58 layoffs of government workers, many of them working in the Justice department, Finance Minister Robert C. McLeod insisted that the budget isn't one of austerity, laughing that he had looked up the definition of the word this morning.

"If you look at what we're doing, it's not severe job cuts," he said.

But McLeod didn't rule out more job cuts.

"Everything is going to be considered. Absolutely everything is going to be considered because we need to take these steps now."

Mike Aumond, the deputy minister of finance, said repeatedly that if the government "did nothing," itwould have to start posting deficits and borrowing more money to cover its costs. As a result of this budget, the government is projecting a surplus of $119 million.

Aumond said the territory has the most volatile economy in the country noting it's the only jurisdiction in Canada that hasn't recovered from the economic crash in 2008.

Cutting travel, contracting, telecommunications

The government says, based on what it heard from N.W.T. residents, it needs to eliminate unnecessary spending.

That's why it's cutting $2.5 million in non-essential travel, contracting and telecommunications across the territory. McLeod couldn't give specifics, but said that could mean buying less equipment or keeping equipment longer.

TheMackenzie Valley Petroleum Planning office will be shutdown. The minister said it's faced questions aboutwhy the government had a separate unit for oil and gas.

"We have responded by closing the Mackenzie Valley Petroleum Planning office for a savings of $665,000," McLeod said in his budget address.

The government is also removing $27 million for programs that will not be renewed this year the so-called "sunset programs."

"Any time you look at any type of reduction it's going to have an impact," McLeod said.

Airport improvement fee to hit Yellowknife

Though there are no new taxes budgeted, residents and businesses in the territory will see some tax increases and new fees.

The Yellowknife airport will be implementing an airport improvement fee. Travellers heading south will pay an extra $20 fee on their ticket; those heading north will pay $10. The government expects the fee to eventually take in $10-$11 million a year.

Businesses at the airport will also be looking at new fees, and airlines will be paying higher landing fees. Aumond says these levies are in line with what other airports across the country are charging. The finance minister couldn't elaborate on what those improvements might be, but the deputy minister said it's all about making the airport a "more attractive destination" for tourism and business.

'Fairly optimistic'

McLeod, who announced his first budget as Finance minister Wednesday, admitted coming into the role was a bit daunting, and he knew he was faced with a challenge.

"It has been a lot of work," he said of the budget.

"We basically did sixmonths work in threemonths."

But McLeod said he's "always fairly optimistic" and he's hopeful the 18thassemblycan improve the territory's fiscal situation and leave the next assembly in a better position.