Keeping with the Government of Yukon’s commitment to make life more affordable for Yukoners while practising responsible management of the territory’s fiscal position, Finance Minister Sandy Silver tabled the 2023–24 First Supplementary Estimates in the Yukon Legislative Assembly today. It includes increases of $105.9 million in net operations and maintenance (O&M) and no changes to gross capital funding.
A large portion of the increase in O&M is the result of meeting commitments following the signing of a new collective agreement between the Government of Yukon and Yukon Employees’ Union. This new collective agreement was ratified in June and accounts for a $36.9 million increase in O&M.
The Supplementary Estimates also include significant investments in protecting the environment and in keeping Yukoners healthy, such as:
- $19.6 million for wildland firefighting costs in response to the significant fire season experienced in the territory and that helped ensure the safety of Yukoners;
- $14.9 million in response to operational funding pressures at the Yukon Hospital Corporation to ensure that Yukoners have access to the health care services and supports they need; and
- $9.8 million for insured health supports, which helps maintain the wellbeing of Yukoners.
The First Supplementary Estimates include a $21.4 million capital allocation to support the development of a marine services platform in Skagway, which will create positive opportunities for the Yukon’s mining industry and its broader economy. Offsetting adjustments are included in this Bill based on timelines, loan program uptake, and the progress of various capital projects to accommodate this new project without any gross changes to capital spending.
The 2023–24 Interim Fiscal and Economic Update was also released today. This update provides context for the fiscal and economic outlook over the medium term, including how the Government of Yukon is responding to key challenges posed by environmental emergencies, the rising cost of living and pressures in the health care system. It shows that, even in the absence of production at the Minto Mine, real gross domestic product (GDP) is expected to increase for a fourth straight year, with growth forecast at 2.9 per cent in 2023. The economic outlook remains positive, with real GDP gains projected in all years of the forecast (2023 to 2027).
The Interim Update also highlights the Yukon’s labour market. It details how a strong labour market is expected to persist over the medium-term, with further growth in the size of the labour market and employment. It also describes how unemployment rates will remain among the lowest in the country, with a rate currently hovering at four per cent.
Our government will continue to do what is necessary to strengthen the health of our economy, our environment and our people. We are pleased that steps were taken to ensure we were on a sustainable path with Budget 2023–24, including the use of a contingency fund, helped safeguard our fiscal position while we responded to unanticipated challenges.
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Supplementary Estimates are used annually by a government to account for spending that is unforeseen at the time of setting the annual Budget.
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The Government of Yukon has maintained its surplus by making use of its contingency fund, included as part of Budget 2023–24. This $50 million contingency fund helped shelter the government’s fiscal position and allowed it to respond to emerging challenges throughout the year. The use of the contingency fund has allowed the government to present a revised surplus of $3.6 million as part of these Supplementary Estimates.
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Projected year-end net debt of $423.8 million is up from the March projection of $374.8 million.
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The Government of Yukon also tabled a Third Supplementary Estimates for the 2022-23 fiscal year, which covers spending requirements for six government departments in meeting retroactive payment commitments under the new collective agreement for wages earned in that fiscal year. It includes a $15.3 million increase in O&M for the 2022–23 fiscal year and a revised annual surplus of $28.6 million and net debt of $313.8 million for that same period.
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The Fiscal and Economic Outlook is introduced in the spring during the legislative sitting and an interim update is published in the fall. These provide a snapshot of the Yukon’s economy and government finances as well as updates on several indicators monitored by the Government of Yukon.
Renée Francoeur
Cabinet Communications
867-334-9194
renee.francoeur@yukon.ca
Eric Clement
Communications, Finance
867-393-6482
eric.clement@yukon.ca