Calls with premiers

[ * ] An asterisk appears where sensitive information has been removed in accordance with the Access to Information Act and Privacy Act.

Proposed approach to calls with Premiers

In the first days of your new mandate, you may want to engage with provincial and territorial premiers, [ * ] You may want to:

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To support you with your introductory calls, this book includes:

During these calls, [ * ] Additional information and advice will be provided to you in advance of future calls and meetings.

You will find specific advice on working with provinces and territories in the Intergovernmental Relations book.

Key messages for your calls with Premiers 

General

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First Ministers’ Meetings

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Platform commitments

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Conclusion

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Multilateral issues [ * ] 

Pandemic response

Context

Canada’s pandemic response has been characterized by unprecedented levels of cooperation between federal, provincial and territorial governments, including 33 First Ministers’ Calls.

Federal supports, including the Canada Emergency Wage Subsidy, the Canada Emergency Business Account and the Canada Recovery Benefits, have helped bridge Canadians and businesses through the pandemic. Canada’s fiscal policy support exceeded 23% of GDP, making it one of the largest emergency spending programs among G7 countries as a percentage of GDP. Your Government has outlined a number of measures to finish the fight against COVID-19, including providing $1 billion to the Proof of Vaccination Fund for Provinces and Territories that implement a vaccine passport and continuing work on vaccine production and procurement of booster shots.

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Economic recovery

Context

The federal government has committed to spending up to $100 billion over three years to support Canada’s economic recovery. Over the course of the pandemic, the federal government has provided 8 out of every 10 dollars spent to fight COVID-19 and support Canadians, including through the $19 billion Safe Restart Agreement (SRA), which helped provinces and territories safely restart their economies and make the country more resilient to future waves of COVID-19. Your Government has now committed to a number of additional measures to help Canada recover the more than one million jobs lost, including by extending the Canada Recovery Hiring Program to March 31, 2022, providing support to the hardest-hit sectors (tourism, arts and culture, creative) and making it easier for small businesses to borrow and invest.

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Canada Health Transfer

Context

The Government of Canada provides significant funding support for healthcare systems to provinces and territories through the Canada Health Transfer (CHT). In 2021-22, the Government of Canada will provide $43.1 billion in support to provinces and territories through the CHT. This is in addition to other support for the healthcare system provided during the COVID-19 pandemic, such as procurement of vaccines and personal protective equipment.

The Council of the Federation has called on the federal government to increase its share of healthcare costs from 22% to 35% of total healthcare spending and to maintain this contribution over time with a minimum annual escalator of 5%. A 35% share of healthcare costs represents a $28 billion increase to the CHT in the current fiscal year. You previously committed to discussing an increase in the CHT with premiers once the fiscal impacts of the pandemic were better understood.

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Long-term care

Context

The pandemic exposed long-standing challenges in long-term care (LTC), including gaps in infection prevention and control, staffing, and infrastructure. In response, your Government allocated $4 billion funding to LTC in the Fall Economic Statement 2020 and Budget 2021. Your Government has now committed an additional $6 billion to improve the quality and availability of long-term care beds.

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Early Learning and Child Care

Context

Budget 2021 committed $30 billion over the next five years and $9.2 billion ongoing to work with provincial, territorial, and Indigenous partners to support Early Learning and Child Care (ELCC). This federal investment is intended to support the establishment of an accessible, affordable, inclusive and high-quality Canada-wide child care system. To date, five-year agreements have been signed with eight provinces and territories to advance national ELCC, including British Columbia, Saskatchewan, Manitoba, Quebec, Nova Scotia, Newfoundland and Labrador, Prince Edward Island and the Yukon.

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Affordable housing

Context

In 2017, your government announced Canada’s National Housing Strategy (NHS). Along with subsequent investments, the NHS outlines a 10-year, $70 billion plan to reduce homelessness and improve the availability and affordability of quality housing in Canada. Your Government has now committed an additional $4 billion for a Housing Accelerator Fund for municipalities to challenge the country’s largest cities to accelerate their housing plans, with a target of building 100,000 new middle-class homes by 2024-25. You also committed to permanently increase funding to the National Housing Co-investment fund, for a total of $2.7 billion over 4 years. Other commitments include the introduction of a Home Buyers’ Bill of Rights, the strengthening of federal oversight of the housing market by establishing the Canada Financial Crimes Agency, and a 12-month ban on foreign ownership.

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Provincial/territorial overviews 

British Columbia

Headshot of John Horgan

Government

Socio-economic and budgetary indicators

Fiscal situation

Solid real GDP growth around 2.25% is expected in 2020–21 following a 5.3% decline in 2020. A 4.7% growth in employment is expected with employment in service sectors increasing. British Columbia’s deficit is forecasted to be $8.1 billion for 2020-21.

Taxpayer-supported debt is forecasted to increase from $60 billion in 2020-21 to $92.7 billion in 2023-24, but will remain below 30% of GDP in each year of the fiscal plan.

COVID-19 re-opening status

Currently, the province is at Step 3 of a four-step plan. Some public health measures remain in effect. As of September 11, 86.36% of people 12 and older in British Columbia had received one vaccine dose and 78.97% had received two doses. Proof of vaccination has been required for some non-essential businesses since September 13.

Context

On September 16, Premier Horgan assumed the role of Chair of the Council of the Federation. [ * ] The Surrey Langley SkyTrain project was announced by governments in early summer; [ * ]

In July, British Columbia was the first province to conclude a bilateral Early Learning and Child Care agreement with the Government of Canada. The province has also collaborated closely with the Government of Canada and Indigenous communities on wildfire management and relief efforts. Additional details on these issues are provided below with responsive lines, as appropriate.

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Alberta

Headshot of Jason Kenney

Government

Socio-economic and budgetary indicators

Fiscal situation

The impact of the pandemic was compounded by the collapse in oil prices in 2020. The province’s 2021 budget forecasts that real GDP declined by 7.8% in 2020, but will rebound in 2021 and 2022 with 5.9% and 3.7% growth respectively. Energy investment is anticipated to turn a corner in 2021 with rising oil production and prices. The unemployment rate is projected to fall gradually from 11.4% in 2020 to 7.3% in 2023. Alberta’s deficit for 2020-21 is estimated to be $20.2 billion, or 6.6% of GDP; the deficit is $19.78 billion larger than the $7.3 billion deficit forecast in the 2020 budget, released in February 2020. The province will spend $3.1 billion in 2021-22 to support Alberta’s economic recovery.

COVID-19 re-opening status

On September 15, Alberta declared a state of public health emergency, re-instated various public health measures, and introduced a proof of vaccine program. As of September 11, 77.5% of the population 12 years and older has received at least one dose and 70.38% of the 12 and older population is fully vaccinated.

Context

[ * ] Alberta plans to hold a referendum on whether to remove equalization from the constitution in conjunction with municipal elections on October 18.

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Saskatchewan

Headshot of Scott Moe

Government

Socio-economic and budgetary indicators

Fiscal situation

Saskatchewan expects real GDP growth of 5.7% in 2021 and 3.2% in 2022, following an estimated contraction of 4.2% in 2020. An estimated 60% of employment losses from 2020 will be recovered in 2021, though the entirety of employment losses from 2020 will not be recovered until 2023. For 2021-22, the deficit is expected to deteriorate to $2.6 billion, reflecting a number of new spending initiatives to support the economy, as well as to boost health and public safety. Among the economic measures with the largest financial impacts are an auto fund recovery rebate, further funding for the accelerated site closure program, customer electricity rebates, and tax expenditures to support home renovations and small businesses. Beyond 2021-22, the deficit is expected to improve gradually, with balance expected by 2026-27.

COVID-19 reopening status

Effective July 11, Saskatchewan entered Step 3 of its Re-Opening Roadmap and the public health order relative to COVID-19 was lifted. All restrictions related to the public health order were removed as of that date. As of September 11, 78.4% of people 12 and older in Saskatchewan had received one vaccine dose and 70.67% had received two doses.

Saskatchewan has announced that as of October 1, a proof of vaccination or negative COVID-19 test will be required to access certain establishments, including restaurants, gyms and entertainment venues.

Context

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Manitoba

Headshot of Kelvin Goertzen

Government

Socio-economic and budgetary indicators

Fiscal situation

Manitoba’s deficit position took time to improve after the 2008-09 recession, growing to 1.4% of GDP in 2015-16. The province exerted more fiscal effort in recent years and achieved balance in 2019-20, although the Parliamentary Budget Officer warned more policy adjustments are needed to achieve long-term fiscal sustainability. In its April 7, 2021 budget, Manitoba projected its deficit for 2020-21 at $2.1 billion (6.6% of GDP), improving slightly to $1.6 billion (5.4% of GDP) in 2021-22. Manitoba will not balance its budget until after 2024-25. The province’s net debt-to-GDP has increased to 39.9% in 2021-22 (from 34.2% in 2019-20), but will start to improve after 2021-22. The budget estimates that without the COVID-19 impacts on revenue and expenditure, the 2020-21 fiscal balance would have been in a surplus position.

COVID-19 reopening status

Manitoba is in stage 3 of its re-opening plan with some public health measures still in place. Proof of vaccination requirements for people who are fully immunized are in place to allow access to businesses, services and events without capacity limits or public health restrictions. As of September 11, 85.95% of people 12 and older in Manitoba had received one vaccine dose and 80.41% had received two doses. Manitoba launched a proof-of-vaccination card in June 2021.

Context

Premier Goertzen was selected as interim leader of the Progressive Conservative Party of Manitoba following the resignation of Premier Brian Pallister. A Progressive Conservative Party leadership election to select a permanent leader (and Premier) is expected to be held on October 30, 2021. Premier Goertzen previously served as Minister of Legislative and Public Affairs and Deputy Premier of Manitoba. It is expected that he will hold the office for approximately 60 days and will continue to work on priorities related to the response to COVID-19, healthcare, infrastructure, internal trade, climate change and clean energy, and reconciliation.

Canada recently approved $40 million over two years for urgent repairs and continued operation of the Hudson Bay Railway, beginning with $30 million in 2021-22 and $10 million in 2022-23, with 50% of the funding designated for track repairs and 50% for operations. This funding was announced on August 6, 2021.

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Ontario

Headshot of Doug Ford

Government

Socio-economic and budgetary indicators

Fiscal situation

Ontario has recorded successive deficits since 2008-09 but has so far been able to stabilize its net debt-to-GDP ratio at around 40% until the start of the pandemic. Prior to COVID-19, the government was planning a return to balance by 2023-24, mostly by limiting program spending. In its March 24, 2021 budget, Ontario projects a budgetary deficit of $33.1 billion or 3.7% of GDP in 2021-22, an improvement from an expected deficit of $38.5 billion in 2020-21. The budget provided an updated Debt Burden Reduction Strategy, including a target maximum net-debt-to-GDP ratio. Given the uncertainty in the outlook, the 2021 budget includes both high and low growth scenarios. Under these alternative scenarios, a return to budget balance could occur as early as 2027-28 or as late as 2031-32. The high-growth scenario assumes the pre-pandemic level of real GDP is reached by the third quarter of 2021, while the low-growth scenario assumes the pre-pandemic level is not reached until well into 2022.

COVID-19 reopening status

Ontario entered Stage 3 on July 16, 2021. As of September 11, 84.8% of people 12 and older in Ontario had received one vaccine dose and 78.6% had received two doses. On September 1, Premier Ford announced that an “enhanced COVID-19 vaccine certificate” system will come into effect in the province on September 22.

Context

Premier Ford is prioritizing recovery from the COVID-19 pandemic, red-tape reduction to foster investment and create jobs, and growth in its export sector. Through its 2021 budget, Ontario provided support for vaccine rollout, as well as to address shortcomings in the province’s long-term care and hospital care. Economic supports are being provided to both individuals and businesses to help protect and create jobs and to reignite the province’s economic engine.

Overall, Budget 2021 includes $51 billion in total supports over the next four years.

In May 2021, the Government of Canada announced it is contributing 40% of public transit projects in the GTA, up to a total of $10.4 billion. On July 29, 2021, the Government of Canada and the Government of Ontario announced a joint investment of more than $1.2 billion to bring high-speed internet to nearly 280,000 rural Ontario households. [ * ]

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Quebec

Headshot of François Legault

Government

Socio-economic and budgetary indicators

Fiscal situation

Quebec expects real GDP to grow by 6.5% in 2021 following a decline of almost 5.2% in 2020. Real GDP growth is expected to slow to 1.5% in 2024 and 2025. The recovery of the labour market will be supported by the pace of vaccinations and the easing of public health measures. The unemployment rate is expected to decline from an average of 8.9% in 2020 to 6.3% in 2021, but to remain above its pre-pandemic level throughout the forecast horizon.

Quebec forecasts a deficit of $3.8 billion or 0.7% of GDP in 2020-21 (before transfers to the Generations Fund and the use of its stabilization reserve in-line with the province’s balanced budget legislation). The province’s net debt-to-GDP ratio is projected to peak at 45.5% of GDP in 2021-22, before gradually declining to 43.4% by 2025-26.

COVID-19 reopening status

All regions of Quebec are currently in the green zone for public health restrictions (Level 1 – Vigilance). As of September 11, 87.8% of people aged 12 and over in Quebec had received one vaccine dose and 82.7% had received two doses. On September 1, Quebec began requiring a vaccine passport that allows for access to certain locations or participation in certain non-essential activities usable only by people who are adequately protected or who have a recognized contraindication to the COVID-19 vaccination. Vaccination passports will be required for people aged 13 and up. Quebec announced on September 7 that, as of October 15, all health and social services workers will need to be adequately vaccinated against COVID-19, unless they have a contraindication preventing them from doing so.

Context

[ * ] Over the past few months, the governments of Quebec and Canada have concluded major bilateral agreements on high-speed internet, child care, temporary foreign workers, affordable housing, virtual care and investments in the aerospace sector.

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New Brunswick

Headshot of Blaine Higgs

Government

Socio-economic and budgetary indicators

Fiscal situation

[ * ] More limited spread of the virus in the province requiring less pandemic-related spending, combined with significant federal support, helped New Brunswick to project a balanced budget for 2020-21. New Brunswick is projecting a 2021-22 deficit of $244.5 million. New Brunswick has postponed plans to return to balance until the economy is on a stable footing.

COVID-19 reopening status

New Brunswick has been in its Green phase (no restrictions) since July 3, 2021. As of September 11, 85.07% of people 12 and older in New Brunswick had received one vaccine dose and 77.01% had received two doses. Premier Higgs has expressed an openness to adopting a vaccine passport program in order to be aligned with other jurisdictions to address mobility needs, but indicated he sees no urgency to do so. If New Brunswick does adopt a program, he said it would likely be a system that allowed vaccinations to be verified through a government website and businesses would still be able to choose whether to use the system.

Context

Premier Higgs was re-elected in September 2020 with a majority government. Budget 2020-21 outlines his government’s plan to address public health challenges and support a strong recovery while maintaining fiscal responsibility. The government is focused on six priorities: energizing the private sector; vibrant and sustainable communities; dependable public healthcare; world-class education; affordable, responsive and high-performing government; and the environment.

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Nova Scotia

Headshot of Tim Houston

Government

Socio-economic and budgetary indicators

Fiscal situation

Following four years of balanced budgets, Nova Scotia recorded a $706 million deficit in 2020-21 (1.6% of GDP) and is projecting a $584.9 million deficit (1.2% of GDP) in 2021-22. While the new government has yet to release its updated fiscal forecasts, Premier Houston indicated during the campaign that his party would invest an additional $553 million this fiscal year, with approximately $430 million directed to healthcare. Premier Houston committed to balancing the budget within 6 years.

COVID-19 reopening status

Moving to the most “open” level of public health measures was delayed from September 15 to October 4 due to increasing case numbers in the Atlantic region. As of September 11, 87.71% of people 12 and older in Nova Scotia had received one vaccine dose and 80.87% had received two doses. On October 4, proof of full vaccination will be required for Nova Scotians, 12 or older to participate in discretionary, recreational or non-essential activities such as dining out, going to a fitness facility, or going to a movie, theatre performance, concert or sporting event.

Context

Premier Houston’s Progressive Conservative Party won a majority government in the province’s August 17, 2021 election, with 31 of 55 seats. The Government is expected to introduce a Speech from the Throne in October and has indicated its priorities include healthcare, dignity for seniors, and economic recovery. In a letter to federal party leaders on September 9, Premier Houston outlined areas for federal-provincial collaboration, including increasing federal healthcare funding, reducing Nova Scotia’s dependence on coal, building affordable housing and increasing immigration. Prior to the provincial election, Canada and Nova Scotia announced a $605 million agreement on ELCC as well as joint funding agreements on clean transportation, energy efficiency and the fish and seafood sector. Premier Houston has not indicated any opposition to these agreements.

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Prince Edward Island

Headshot of Dennis King

Government

Socio-economic and budgetary indicators

Fiscal situation

Prince Edward Island (PEI) has been able to bring its finances under control after recording a series of deficits starting in 2008-09. PEI recorded sizeable surpluses from 2017-18 to 2019-20, which enabled the province to achieve the lowest debt-to-GDP ratio east of Saskatchewan. The 2021 budget forecasted a $120 million deficit (1.7% of GDP) in 2020–21, an improvement of about $50 million over 2020 projections. Looking forward, PEI is projecting a deficit of $112 million for 2021-22, followed by narrowing deficits through 2023-24. The net debt-to-GDP ratio is projected to rise temporarily but resume its declining trend in 2022-23.

COVID-19 reopening status

PEI is at Step 4 of 5, as of July 18, 2021. As of September 11, 92.07% of people 12 and older in PEI had received one vaccine dose and 83.68% had received two doses. PEI has announced that Step 5, originally estimated to begin on September 12, will be implemented over time, with border and travel measures remaining in place until at least mid-October.

Premier King has indicated that PEI will likely follow the lead of other provinces and implement a vaccine passport, built on the PEI Pass.

Context

Premier King was elected in April 2019 to a minority government but subsequently secured a slim majority with a by-election victory in November 2020. PEI’s 2021-22 Budget outlined four priorities: healthcare, education, the environment and the economy. Concerning healthcare, the focus is on rural health, senior care, virtual care, mental health, and the recruitment of nurses. Education priorities include universal pre-kindergarten, affordable childcare, more childcare spaces, post-secondary grants, and additional front-line staff. [ * ] In July, Canada and PEI announced an agreement to support an average of $10 a day early learning and child care in the province by 2024.

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Newfoundland and Labrador

Headshot of Andrew Furey

Government

Socio-economic and budgetary indicators

Fiscal situation

Newfoundland and Labrador (NL) has been recording large deficits since 2012-13. NL’s program spending per capita is by far the highest among provinces. The NL government had taken steps to correct its fiscal course since Budget 2016, including tax increases and spending level reductions. [ * ] NL projects that reduced economic activity and lower oil royalties will result in a deficit of 5.8% of GDP in 2020-21. Its debt burden is projected to increase to 47.1% of GDP, representing a significant increase from its low point in 2011-12, but still below the record 1998-99 level of 69.5% of GDP. The province’s 2021 Budget committed to “modernize and transform government, improve service delivery, and address financial concerns.” It also committed to introducing balanced budget legislation; achieving fiscal balance within five years; and a surplus by 2026–27. Further fiscal measures are expected in response to recommendations from a series of expert panels, including the Premier’s Economic Recovery Task Force (PERT). PERT issued its report, The Big Reset, in May 2021 with 74 recommendations aimed at reducing deficit spending; streamlining operations; increasing transparency and accountability in publicly funded organizations; diversifying the economy; and leading a green transition.

COVID-19 reopening status

Newfoundland and Labrador is currently in Step 2 of its three-step re-opening plan, with partial restrictions in place, including on travel, gatherings and recreational activities. One region remains at a higher level of restrictions due to a community outbreak. As of September 11, 89.77% of people 12 and older had received one vaccine dose and 80.09% had received two doses. On September 7, Premier Furey indicated that the province would introduce a vaccine passport in the coming weeks.

Context

Premier Furey was elected in March 2021 and leads a majority government. His government’s priorities include stabilizing the province’s finances, achieving a net-zero economy by 2050, investing strategically to support the province’s burgeoning technology sector, and identifying ways to enhance the environmental performance of its extractives sector. The province is expected to rely on its extractives as the key revenue generator for the next several decades.

A number of joint announcements were made with Newfoundland and Labrador in the lead-up to the federal election, including an agreement-in-principle on the financial restructuring of the Lower Churchill projects, and agreements on ELCC, virtual care and long-term care.

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Yukon

Headshot of Sandy Silver

Government

Socio-economic and budgetary indicators

Fiscal situation

Despite the economic disruption brought on by the pandemic, Yukon is facing a positive economic outlook and it was one of two jurisdictions in Canada to record real GDP growth last year. The economic impact of the pandemic was largely cushioned by public spending, a resilient housing market, and increased mining production. Yukon’s 2021-22 Budget (revised) forecasts the annual deficit decreasing from $12.7 million to $6.6 million and net debt decreasing from $175.4 million to $169.6 million.

COVID-19 reopening status

On August 25, the territory began to significantly ease public health measures including lifting Yukon’s state of emergency. The Government of Yukon released a new framework (“Forging Ahead”) outlining its ongoing COVID-19 response. As of September 11, 89.61% of people 12 and older had received one vaccine dose and 85.17% had received two doses.

Premier Silver has previously called for a national registry to verify vaccination; on September 7, he announced that a new online proof of vaccination credential service is now available to Yukoners.

Context

Premier Silver’s Liberal Party was re-elected to a second term in office in April 2021. The Yukon Liberal and NDP Caucuses have negotiated a Confidence and Supply Agreement, which is in effect until January 31, 2023 to support a Yukon Liberal government. [ * ] The Territory enjoyed a strong labour market and economic growth in the years leading up to the pandemic, with the lowest unemployment rate in the country.

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Northwest Territories

Headshot of Caroline Cochrane

Government

Socio-economic and budgetary indicators

Fiscal situation

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COVID-19 reopening status

NWT is gradually easing/modifying its measures, guided by reopening criteria (phases in reopening plan are not numbered) with a number of restrictions still in place. Notably, leisure travel into the territory is not permitted, with several exceptions. All restrictions are expected to be lifted by mid-to late fall 2021. As of September 11, 77.96% of people 12 and older had received one vaccine dose and 72.58% had received two doses. NWT has not introduced a vaccine passport system. Premier Cochrane has expressed concerns with implementation in the NWT context (e.g., implications for medical travel, limited resources).

Context

Caroline Cochrane was selected as Premier of the NWT on October 24, 2019. [ * ] Longer-Term Challenges such as maturing diamond mines, an aging population, and a lack of economic diversification or private-sector activity has been identified by the NWT’s Finance Minister Caroline Wawzonek as factors that will hinder future growth without “substantive structural changes.”

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Nunavut

Headshot of Joe Savikataaq

Government

Socio-economic and budgetary indicators

Fiscal situation

[ * ] The borrowing limit was increased from $650 million in June 2020. Nunavut was of one of two jurisdictions in the country to record growth in 2020 with a real GDP increase of 2.7%. This is, however, a significant decline from the projection of 12.9% growth in Budget 2020 (released last February). Economic growth is largely attributable to developments in the gold-mining industry while its long-term prospects are linked to the territory’s mineral potential, global commodity prices, and workforce education and skill development to integrate local residents into the resource development sector.

COVID-19 reopening status

Gradual easing/modifying of measures (e.g., Common Travel Area established with Nunavik as of July 29) as guided by reopening criteria; plan does not include numbered phases. As of September 11, 82.24% of people 12 and older had received one vaccine dose and 72.38% had received two doses. Premier Savikataaq has recently indicated that the Government of Nunavut will wait until after federal and territorial elections to inform whether/how the Territory would adopt a mandated approach to proof-of-vaccination credentials.

Context

Joe Savikataaq was selected as Premier of Nunavut on June 14, 2018. [ * ] The final sitting of the 5th Legislative Assembly ran from September 9–16. Following the October 25 territorial election, incoming MLAs will convene as the Territorial Leadership Forum to select the Speaker, Premier and Ministers in a secret ballot election on November 17.

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