Thank you, Mr. Speaker. How worried should we be about our financial future as a government? Well, if you listen to our Finance Minister, he’ll try to reassure that his department restored the balance between revenues and expenditures. But did they? He’ll tell you this administration works on paying down their short-term borrowing debt and focuses on building their cash reserves. But do they? All I can recall is that our short-term borrowing limit was increased by this administration from $175 million to $275 million less than two years ago and we were told last week they want another $25 million to top this up. So I ask, how is this paying down short-term debt and building up cash reserves? It’s a funny way of showing it.
Then there’s that famous reference that devolution will reduce our reliance on federal funding. Very poetic, yet there is absolutely no evidence to this statement. So I ask, how is the Minister measuring this one?
Then there’s the ever popular line that the GNWT has been successful in managing expenditure growth. Well, to be truthful, our expenditure growth is about 1 percent, despite forced growth at about 2 percent, but if you factor in Canada’s 2013 inflation rate of 1.3 percent, in real terms it only suggests a slight reduction in spending. So I ask again, is this successful by definition? Not really.
We know over 70 percent of our revenues come from the Territorial Formula Financing Grant, which we’re always reminded is outside the ability of the GNWT to influence. But again, is this true?
I asked those hard questions earlier this year, yet this government refused to look at a legislative triggering opportunity to review this formula financing with the feds in 2014. Too busy with devolution, they said, and now it’s too late.
Clearly, without growth in other revenues, this government needs to reduce or realign operating and infrastructure budgets, yet this is not happening. Instead, we continue to spend ourselves into a corner with every budget.
Yes, as a strategy, we need to grow our economy to increase revenues, to meet expenditure demands and invest wisely in infrastructure. This is all a given. However, without immediate corrective behavior, I fear history will judge the 17th Legislative Assembly as the one that went down the wrong path of righteousness at the expense of ignorance. Thank you, Mr. Speaker.
Thank you, Mr. Dolynny. Member for Nahendeh, Mr. Menicoche.
