Mr. Chairman, I am here to present the Department of Finance’s main estimates for the 2011-2012 fiscal year.
For 2011-2012 the Department of Finance is requesting a total operations budget of $100.784
million. This is a $9.316 million decrease from the 2011-2012 Main Estimates and represents an 8.5 percent reduction to funding levels. The items that effect this change are highlighted as follows:
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Excluding the contribution funding provided to the Northwest Territories Housing Corporation, there is a net increase of $203,000 proposed for the Department of Finance’s operations budget. This represents a 0.5 percent increase over the 2010-2011 mains. This net increase is comprised of an investment of $552,000 in forced growth areas, primarily to implement Collective Agreement increases. This is partially offset by reductions totalling $349,000 that are associated with the sunsetting of one-time funding provided in 2010-2011 to complete planning, design and transition work related to the implementation of the Financial Shared Services Centre and for the Information Security Initiative.
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A net decrease of $9.519 million is associated with the contribution funding provided to the NWT Housing Corporation. This net decrease is comprised of an increase of $2.521 million in forced growth and strategic initiative funding that is more than offset by a reduction of $12.04 million associated with the revised manner in which Canada Mortgage and Housing Corporation’s share of the Public Housing Rental Subsidy program funding is recorded. As the responsibility for the delivery of the PHRS Program now rests with the Northwest Territories Housing Corporation the CMHC share of the program costs is no longer flowed through the GNWT and, therefore, is no longer recorded as an appropriation with a corresponding revenue offset. The CMHC share of program costs is provided directly to the Northwest Territories Housing Corporation. The Department of Finance has no direct authority over this contribution funding other than providing the corporation with its operating cash flow.
The department continues to be guided by its strategic action plan which provides multi-year direction for the department. This plan includes two overarching strategic priorities: fiscal sustainability and modern management. These strategic priorities are critical to the long-term success of the GNWT and guide departmental initiatives and action items.
Each of the business activities of the department provides a foundation for all other activities of government through raising revenues, managing expenditures, protecting assets, providing critical fiscal, financial and economic information, and promoting accountability. In developing the Department of Finance’s 2011-2012 Main Estimates primary consideration was given to the key objectives requiring action by the Department
of Finance in support of the government’s strategic direction including:
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continuing the implementation of a Financial Shared Services Centre, including a shared services procurement model;
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implementing a new Knowledge Management Strategy;
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continuing the process of modernizing the
government’s financial management framework, including further work on SAM and rewriting the Financial Administration Act and its associated regulations and policies;
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continuing to seek input on budget and
revenue options.
As the government’s lead revenue department, the revenues managed by the Department of Finance are projected to total approximately $1.25 billion or about 92 percent of the total GNWT revenues being forecast for 2011-2012 fiscal year. This represents a 4.3 percent increase from the revised 2010-2011 forecasts and is primarily attributable to a projected increase in the grant from Canada of $76 million and a $6 million projected increase in other transfer payments offset by a $31 million projected decrease in taxation revenues.
That concludes my opening remarks.
