Thank you, Mr. Chairman and Members of the committee. Mr. Chairman, the Department of Finance's 1993-94 expenditure budget will increase by $265,000 and three person years over the 1992-93 Main Estimates.
In total, revenues budgeted in the Department of Finance, are expected to increase by $42.7 million. Of this, $32.1 million is from the expected increase in the grant from Canada; $1.4 million is from the expected increase in taxation revenue; $1.6 million is the expected increase in interest income; and, $8.2 million is from the payroll tax scheduled to be implemented on July 1, 1993.
Partially offsetting these revenues is the estimated administration cost of the payroll tax of $322,000 and three person years.
Budgeted expenditures and revenues from the Department of Finance have been decreased equally by $589,000 to reflect the reduced interest expense resulting from the redemption of $5.35 million of Northwest Territories Power Corporation bonds and a corresponding reduction in interest revenue from the power corporation.
The 1993-94 budget does not include a provision for interest on short-term borrowing. A supplementary estimate will be submitted later in the fiscal year when the short-term borrowing requirements and related interest expenses can be more accurately estimated.
Effective July 1, 1993, power utility costs will be paid by GNWT staff located in staff housing. It is hoped that this measure will encourage tenants to be more prudent in their use of electricity. As a result of implementing a user-pay policy, tenants of staff housing will become eligible for the government subsidy on domestic power. The anticipated increase in subsidy costs is included in the department's budget in the approximate amount of $1 million. Thank you, Mr. Chairman. That concludes my opening remarks