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GNWT releases Budget 2025-2026

Press Release

February 6, 2025

Finance Minister Caroline Wawzonek has presented the Government of the Northwest Territories (GNWT) 2025-26 budget to the 20th Legislative Assembly.

Budget 2025-2026 addresses cost pressures in programs and services while departments continue work toward the fiscal sustainability strategy targets in Restoring Balance: A Fiscal Sustainability Strategy for the 20th Legislative Assembly.

Budget 2025‑2026 forecasts revenues of $2.7 billion and allocates $2.5 billion for operating expenditures, providing the GNWT with an operating surplus after adjustments of $170 million. The budgeted surplus will ensure enough cash so that the GNWT will not borrow for capital this year, which is necessary to achieve the target to gradually lower short-term debt. Budget 2025-26 contains no new taxes, but some fees and taxes will be indexed to inflation.

Efforts continue to return the GNWT to fiscal sustainability by increasing operating surpluses, reducing short-term debt, realigning health spending, and allocating funding to priorities of the Assembly. Additional costs to address low water, cost overruns and more funding to right-size health expenditures since the 2024-25 budget have made the fiscal strategy targets more difficult to attain.

We remain committed to meet Restoring Balance targets, the GNWT is also working to adjust department spending in a measured way to ensure the sustainability to core programs. The GNWT has requested an increase to the federally imposed borrowing limit, to allow the time necessary to further assess how to decrease expenditures and/or increase revenues without compromising program and service delivery or damaging the economy. However, further fiscal action will be needed to ensure that expenditure growth does not outpace revenues.

Quote

“Budget 2025-2026 funds the priorities of the 20th Legislative Assembly while maintaining fiscal stability. In an era of uncertainty, we must stay focused on efficiency, innovation, and sustainability to support the NWT’s future prosperity.”

Caroline Wawzonek, Minister of Finance

Quick facts

  • Total 2025-26 spending is projected to be $2.62 billion, including $2.38 billion in departmental spending and $339 million in infrastructure spending.
  • The debt projection is $1.77 billion by March 31, 2026, only $28 million below the $1.8 billion federally imposed borrowing limit.

Related links

For media requests, please contact:

Beau Stobbs
Senior Communications Officer
Department of Finance
Government of the Northwest Territories
EIA_FINComms@gov.nt.ca

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