I do, Mr. Chairman. I am here to present the Department of Finance’s main estimates for the 2012-13 fiscal year.
For 2012-13 the department has identified a total operations budget of approximately $142.1 million, which is comprised of:• A $65.4 million contribution to the NWT Housing
Corporation, of which the department has no direct authority over this contribution funding other than providing the corporation with its operation cash flow, and $76.7 million for departmental operations.• The $76.7 million for the department represents
a 94 percent increase from the 2011-12 Main Estimates. This is primarily the result of a $22 million reclassification adjustment on how all levels of public governments will be required to account for income tax credits. This change will make the tax system more transparent by ensuring that expenditure programs are not disclosed by netting them from tax revenues.• The other major item contributing to this
increase is a $15.6 million contribution to the NWT Power Corporation in support of the corporation’s general rate application. As Members are aware, the GRA proposes to reduce the impacts to residents of the power rate increases that would have been necessary to ensure the corporation generated sufficient revenues for its operations.
As the government’s lead revenue department, the revenues managed by the department are projected to total approximately $1.41 billion or about 92.5 percent of the total GNWT revenues being forecast for the 2012-13 fiscal year. This represents a 10 percent increase from the revised 2011-12 forecasts. This is attributable to a projected increase of $74 million in federal transfers and a projected increase of $55 million in corporate income tax revenues, due mainly to an absence of negative prior year adjustments.
Each of the business activities of the department provides a foundation for all other activities of the government, through assessing new revenue sources, managing expenditure growth, protecting assets, providing critical fiscal, financial and economic information, and promoting accountability.
The department’s 2012-13 Main Estimates continue to support the work identified in the department’s strategic plan which was tabled during the 16
th Assembly. This work supports the priorities identified by the 17
th Assembly, and continuing
initiatives that will support the sustainability of our territory for future generations. Two important results have been achieved to date, including the successful negotiation of an increase to the borrowing limit from $575 million to $800 million, and the renewal of key federal transfers such as the Canada Health and Social Transfer agreements to 2023-24, and the Territorial Formula Financing Agreement to 2028-29.
As Members are aware, the Premier has issued specific mandates to each Minister to support the priorities of the 17
th Assembly. Specific activities in
the department’s 2012-13 Main Estimates include:• the continuation of several modern management initiatives such as the renewal of the Financial Administration Act, the planning and implementation of financial shared services in the regions, and finalizing the new Knowledge Management Strategy;• the assessment of a financing and procurement
options of a proposed fibre link through the Mackenzie Valley;• supporting the efforts to ensure a successful
completion of a Devolution Final Agreement and the implementation of the agreement;• a fiscal strategy that supports the priorities of
this Assembly but also recognizes the GNWT has finite resources and we need to continue our plan to reduce our overall short-term debt burden;• developing a strategy that recognizes the
volatility of our revenues and plans to ensure stable revenues for planning and budgetary purposes.
That concludes my opening remarks. Thank you, Mr. Chairman.