Yes, Mr. Chairman. I am pleased to present the Department of Finance's Main Estimates for the fiscal year 2007-08 fiscal year.
The main estimates for the Department of Finance identify a total expenditure budget of $11.461 million for 2007-08. This presents a 44 percent increase over the 2006-07 Main Estimates amount. The net increase is composed of:
- • an additional $3.2 million to fund interest costs associated with increased government borrowing;
- • $222,000 for projected insurance cost increases;
- • $179,000 to fund Collective Agreement increases and approved northern allowance adjustments; and
- • a reduction of $93,000 to reflect sunsetting of one-time implementation costs associated with establishing the macroeconomic policy function.
Although the GNWT is forecasting a small operating surplus for the coming fiscal year, capital acquisition costs and the repayment of the 2002 corporate income tax overpayment will result in the GNWT incurring a cash deficit in 2007-08. This will be the first time this has occurred since early 2001. An increase in the department's budget for interest costs is required to finance this debt. However, the government will remain within the guidelines of the fiscal responsibility policy and will not exceed the $300 million debt limit in 2007-08.
During 2007-08, the Department of Finance will continue to focus on the fiscal issues affecting the GNWT, such as territorial formula financing, the GNWT's borrowing strategy, and resource revenue sharing.
Another key initiative for the department in 2007-08 is the development of a new economic roadmap, or macroeconomic policy framework, for the Northwest Territories. The framework will build on the consultations held last fall, including the excellent discussions that occurred at the roundtables in Yellowknife and Inuvik. The report on those consultations has been completed and was tabled in this Assembly earlier this session. Later this spring, it is our intention to bring people together again to discuss key issues and help us chart the course for our economic future. By the end of this summer, the goal is to develop a policy framework to help guide the GNWT in its investment decisions and economic policy choices.
That concludes my opening remarks. I would be pleased to answer any questions Members may have. Thank you.