Government of Canada announces increase to Nunavut’s borrowing limit
“We know that increasing its borrowing limit will offer the Government of Nunavut greater flexibility to access financing and augment its ability to carry out the strategic investments needed to meet the needs of its citizens in the coming years. Additionally, this will give the Government of Nunavut more options to manage fiscal pressures as a result of the COVID-19 emergency which is affecting all Canadians.
- Bill Morneau, Minister of Finance
“Flexibility in our territorial borrowing limit gives us room to better plan our future spending needs, such as major infrastructure projects or strategic investments in our economy. We welcome the federal government’s offer to increase the borrowing limit as a means of providing greater fiscal flexibility for our territorial needs.”
- Hon. George Hickes, Minister of Finance, Government of Nunavut
Under the Nunavut Act, the Government of Nunavut may borrow up to a limit set by the Governor-in-Council on the recommendation of the Minister of Finance. This borrowing limit is inclusive of debts incurred by both the territorial government and the territorial Crown corporations.
The territorial government can borrow for territorial, municipal or local purposes up to the established limit without federal approval.
Reviews of the territorial borrowing limit can take place at any time, or upon request from a territorial government.
The current limit for Nunavut was set at $650 million on May 28, 2015, through Order in Council P.C. 2015-0645.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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