A new approach leads to a more achievable and fiscally responsible capital budget for the GNWT

Members of the Legislative Assembly approved the capital budget of $328 million for the 2023-2024 fiscal year. This includes funding for critical infrastructure projects in communities across the Northwest Territories (NWT).

The 2023-2024 budget is significantly lower than previous capital forecasts. In recent years, capital budgets have been significantly higher than capital expenditures due to limitations in the ability of the Government of the Northwest Territories (GNWT) and the territory to complete projects. As part of a new approach to capital budgeting, the GNWT is committed to ensuring that its budget better reflects planned capital expenditures.

Each year, the GNWT invests in infrastructure that helps us serve NWT residents, including social housing, schools and health centres. The GNWT also invests in improving and upgrading transportation infrastructure like roads and airports that connect our people and our communities.

The timing of the 2023-24 capital budget approval provides a planning period for departments and contractors. This planning period is intended to facilitate the procurement process and to take into account the relatively short summer construction period in the Northwest Territories.

Quotation)

“The 2023-24 Capital Estimates align realistic spending with achievable timelines and continue to advance the mandate priorities agreed to by the 19th Legislative Assembly. The new approach that resulted in these proposed estimates will encourage holistic planning, support more realistic financial management and, most importantly, focus attention and responsibility where it should be – on delivering projects that are ready to move forward.

– Caroline Wawzonek, Ministry of Finance

Fast facts

• In total, the 2023-24 Capital Expenditure Budget presents a spending plan of $328 million for capital projects: a more realistic and achievable budget that reflects the current status of projects and the capacity of construction of the GNWT and the NWT.
• The GNWT has adopted a revised approach to preparing the 2023-24 Capital Budget with the goal of developing a capital plan that will better align the GNWT’s planned spending with actual project delivery.
• Some previously announced projects have been moved from scheduled delivery in 2023-24 to a “priority and planning” list, including the Great Bear River Bridge currently proposed as part of the Mackenzie Valley Highway, the Colville Lake School and a number of long-term projects. term care facilities.
• This change does not mean that the GNWT is removing previously approved projects from our long-range planning.
• The revised approach also had no impact on annual capital funding pooled funds, including minor capital projects, capital retrofit and biomass funding, joint funding road sealing/bridges/culverts, information management and technology capital equipment or deferred maintenance.

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For media inquiries, please contact:

Todd Sasaki

Manager, Public Affairs and Communications

The Department of Finance

Government of the Northwest Territories

todd_sasaki@gov.nt.ca