Tough choices coming in N.W.T. budget, finance minister warns

Northwest Territories Finance Minister Michael Miltenberger warns that his budget for the upcoming fiscal year will entail some tough spending decisions, as the recession hits the territory.

Miltenberger, who will hand down the 2009-10 budget Thursday in Yellowknife, told CBC News that the current economic situation has changed the territory, which used to enjoy a hot and quickly growing economy.

"Like any other jurisdiction, things have come to almost a screeching halt, and the worst is yet to come," Miltenberger said.

He said the territorial government has almost half of its borrowing limit taken up already.

While revenue is falling, despite renewed deals for federal transfer payments, Miltenberger said the costs of delivering social programs and other services are rising. Declining tax revenue from corporations is a factor, he said.

"If our revenue projections hold true, then we're going to be in a situation of our expenditures definitely exceeding our revenues," he said.

"We're going to be in a situation of having to make tough decisions about what can we afford to keep, and what do we have to, regretfully, maybe not do anymore."

Miltenberger said the budget will contain spending, including "tens of millions of dollars" on alternative energy initiatives to lower power costs in small, remote communities.

CBC Radio One in the N.W.T. will carry live coverage of the N.W.T. budget on Thursday starting at 1:30 p.m. MT. Details of the budget will also be posted online after 1:30at cbc.ca/north.