The Honourable Jim Flaherty, Minister of Finance, today announced the publication in the Canada Gazette of the Yukon Borrowing Limit Regulations, the Northwest Territories Borrowing Limit Regulations and the Nunavut Borrowing Limit Regulations.
These regulations will provide the territories with greater clarity regarding the operation of their borrowing limits and ensure accurate reporting of borrowing obligations against the borrowing limits.
“With these regulations, the Harper Government has modernized and improved the territorial borrowing limit framework,” said Minister Flaherty. “This will assist the territories in fiscal planning as they consider future investments to support ongoing economic development and growth.”
Federal legislation ensures that territorial governments have the authority to borrow money for territorial, municipal or local purposes. On March 8, 2012, the Government of Canada increased territorial borrowing limits to $800 million, $400 million and $400 million respectively for the Northwest Territories, Yukon and Nunavut.
The new regulations address the territorial borrowing limit provisions introduced in 2012 as part of the Jobs, Growth and Long-term Prosperity Act respecting:
- what constitutes borrowing for the purpose of the limit;
- the entities whose borrowing must be taken into account; and
- the manner in which the value of any borrowing is determined.
“All three borrowing limit regulations were developed in close consultation and collaboration with the respective territorial governments,” said Minister Flaherty. “I would like to thank them for partnering towards this achievement, and I look forward to our ongoing cooperation on practical and concrete measures in support of their future prosperity.”
