Canada’s finance minister, Bill Morneau, says he intends to raise Nunavut’s borrowing limit by $100 million.
The borrowing limit, which is set by the federal government, would increase to $750 million, up from $650 million.
“We know that increasing its borrowing limit will offer the Government of Nunavut greater flexibility to access financing and augment its ability to carry out the strategic investments needed to meet the needs of its citizens in the coming years,” Morneau said in a news release issued on June 12.
“Additionally, this will give the Government of Nunavut more options to manage fiscal pressures as a result of the COVID-19 emergency which is affecting all Canadians.”
Nunavut’s finance minister, George Hickes, greeted the higher borrowing limit as good news.
“Flexibility in our territorial borrowing limit gives us room to better plan our future spending needs, such as major infrastructure projects or strategic investments in our economy,” Hickes said in the release. “We welcome the federal government’s offer to increase the borrowing limit as a means of providing greater fiscal flexibility for our territorial needs.”
Nunavut’s borrowing limit was last reviewed in 2015. Nunavut’s cabinet has called for a higher borrowing limit since then.