The Government of Canada is committed to maintaining open and collaborative relationships with every province and territory, with the goal of working together to serve and improve the lives of all Canadians.
Today, Finance Minister Bill Morneau announced that the Government of Canada intends to increase Nunavut's borrowing limit, as part of its ongoing collaboration with, and support to territorial governments.
Based on a review of all three territorial borrowing limits and the Government of Nunavut's improved capacity to carry debt and changes in its economic and fiscal outlook since the last review in 2015, the Government of Canada is proposing that the borrowing limit be increased from the current level of $650 million to $750 million, upon Governor-in-Council approval.
This additional borrowing room will provide the Government of Nunavut with greater fiscal flexibility to make strategic infrastructure investments and to promote economic development in Nunavut.
Quotes
"We know that increasing its borrowing limit will offer the Government of Nunavut greater flexibility to access financing and augment its ability to carry out the strategic investments needed to meet the needs of its citizens in the coming years. Additionally, this will give the Government of Nunavut more options to manage fiscal pressures as a result of the COVID-19 emergency which is affecting all Canadians.
- Bill Morneau, Minister of Finance
"Flexibility in our territorial borrowing limit gives us room to better plan our future spending needs, such as major infrastructure projects or strategic investments in our economy. We welcome the federal government's offer to increase the borrowing limit as a means of providing greater fiscal flexibility for our territorial needs."
- Hon. George Hickes, Minister of Finance, Government of Nunavut
Quick facts
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Under the Nunavut Act, the Government of Nunavut may borrow up to a limit set by the Governor-in-Council on the recommendation of the Minister of Finance. This borrowing limit is inclusive of debts incurred by both the territorial government and the territorial Crown corporations.
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The territorial government can borrow for territorial, municipal or local purposes up to the established limit without federal approval.
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Reviews of the territorial borrowing limit can take place at any time, or upon request from a territorial government.
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The current limit for Nunavut was set at $650 million on May 28, 2015, through Order in Council P.C. 2015-0645.
