Mahsi, Chair. The committee met with the Minister of Finance on September 19, 2006, to review the draft business plan for the Department of Finance.

Committee members noted that the department is proposing to spend $11.461 million in operations expenses in fiscal year 2007-2008. This substantial increase of $3.508 million, or 44.11 percent, since the 2006-2007 Main Estimates is mostly -- $3.2 million -- due to the increase of short-term interest expenses beside higher costs for insurance premiums and salaries and benefits.

Committee members offer the following comments on issues arising out of the review of the 2007-2008 Draft Main Estimates and budget-planning cycle:

Financial Relationship With Canada

The standing committee believes that the NWT has a bright future. However, its ability to use the unfolding opportunities to the benefit of the population will also depend on the GNWT's capacity to make timely investments in infrastructure and people. Therefore, the committee continues to support the Finance Minister in his efforts to secure a fair formula financing arrangement with Canada, and to have the arbitrarily imposed borrowing limit of $300 million increased. Mahsi cho.