The positive revenue developments of this year will partially carry over to 2001-2002 and allow us to make some modest but critical new investments. Even with a projected $34 million increase in spending for 2001-2002, we anticipate we will still be able to achieve a small operating surplus of around $2 million. On the revenue side, the picture is brighter for several reasons. A higher grant from Canada and higher own source revenues reflect our stronger economic outlook and higher population growth.

On the expenditure side, the coming fiscal year will see a significant increase in our capital investments as we begin work to replace the Inuvik Hospital and build the North Slave Correctional Centre. This will translate into a $61 million increase in capital assets.

The debt level of the government itself will return to about $74 million by the end of the fiscal year, the point at which our short-term borrowings are at their highest. With the addition of the debt of government corporations, our consolidated debt will rise to $251 million.