Thank you, Mr. Chairman. I am here to present Bill 1, An Act to Amend the Borrowing Authorization Act. The purpose of this act is to increase the short-term authority to borrow provided in Section 1(2) of the act from $175 million to $275 million.
The amendment is being proposed in order to provide the short-term borrowing authority needed to make a $65 million corporate income repayment on March 31, 2012. On April 1, 2012, the GNWT will once again be within the current limit when the GNWT receives the first Territorial Formula Financing payment for 2012-13.
The proposed amendment also recognizes the growth in government operations since 1995 when the limit was last increased. The current limit represented about 24 percent of revenues at division. Over the last 13 years, government operations and revenues have increased while the limit has remained the same and now represents only 13 percent of revenues. The proposed limit will make it easier to manage cash, especially if new infrastructure programs are announced by the federal government in the next three or four years.
Although this proposal increases the short-term borrowing limit, the GNWT will, under its current Fiscal Strategy, start to recoup cash resources over the next few years and actual short-term borrowing requirements will therefore start to decrease. Thank you, Mr. Chairman.