N.W.T. gov't to table budget amid looming questions about economic recovery

Facing an uncertain economic recovery and a tight fiscal situation, the government of the N.W.T. will table this year's budget in the legislature later Thursday.

Officials face a growing list of urgent demands as the pandemic continues to impact business and travel, but will need to balance any new spending with increasingly limited financial wiggle-room.

The details of the budget are under wraps until it's formally tabled in the legislature around 1:30 p.m. MT.

MLAs are expecting the government to announce new pandemic relief measures aimed at reducing homelessness and supporting tourism operators.

Others emphasized the need for government spending to be targeted to Indigenous businesses, boosting job creation in smaller communities.

The government is in the midst of a wide-ranging review of its procurement policies, which Finance Minister Caroline Wawzonek suggested would be used to guide the territory's economic recovery.

But just last month, the government's business advisory council suspended its work, saying economic recovery was not a focus of the government at this time.

Limited room for new spending

Any money for new recovery measures will be limited by the territory's tight fiscal situation.

Last year's budget, tabled just weeks before COVID-19 restrictions were introduced, included very little new spending, allocating just $25 million for all the assembly's priorities over its four-year mandate.

But that fiscal reality was upended by the pandemic, which has seen more than $90 million of new federal money transferred to the territorial government.

Much of that money may already be allocated, with a new government department dedicated to COVID-19 expected to cost as much as $40.5 million in 2021-22 alone.

At the time it was announced, Premier Caroline Cochrane said she would be seeking more federal funding to make up the shortfall. It's not yet clear if that funding was secured.

There are likely to be pressures on government revenues as well.

While work has resumed at many of the territory's mines, a lengthy pause during the height of the pandemic last spring means resource royalties are likely to contribute less to territorial coffers this year.