Mr. Speaker, later today I will table the Interim Estimates, Operations Expenditures, 20242025 which presents an interim budget for the Government of the Northwest Territories. This interim budget will provide funding for programs and services over the first quarter of the upcoming fiscal year, giving the 20th Legislative Assembly appropriate time to complete its transition and to set its priorities. Mr. Speaker, it will come as no surprise that flooding, drought, wildfire events, and the global COVID19 pandemic have all negatively impacted the government's financial capacity. Despite these challenges, Mr. Speaker, the GNWT has taken several significant actions to maintain the sustainability of public finances.
We have capped the budget for large capital projects at $260 million to better reflect what the GNWT can deliver in a year. This single action returned the government's mediumterm outlook to a more sustainable path. In 2023, we also updated the GNWT's fiscal responsibility policy to reinforce our commitment to transparency and accountability, requiring that our budgeted consolidated debt be a minimum of $120 million below the federal borrowing limit. In addition to this, the government renewal initiative is building a culture within the public service to maximize efficiency and value for money, aiming to ensure that the GNWT does the right things at the right time in the right way.
Looking ahead, strengthening the Northwest Territories' economy must be top of mind when speaking of our fiscal reality. Maturing diamond mines, lack of economic diversity, and declining private sector investment are the main drivers of the territory's economic challenges. We are also mindful of global events influencing what happens within the territory, including ongoing supply chain challenges and labour market availability. I am pleased to say the Northwest Territories' employment rate remains strong and wages continue to grow. While this provides added resources to workers to deal with inflation, it can also create additional financial pressures for businesses.
Mr. Speaker, the significant challenges I just outlined mean the GNWT will need sufficient fiscal resources to respond to future needs, both anticipated and unforeseen. We will need a fiscal strategy that can address our financial challenges while delivering on the priorities of the 20th Legislative Assembly. A welldeveloped mandate and priorities will provide direction for the government to create not only its fiscal plan for the next budget year but also operational plans for the life of this government.
In preparation for the operating budget I will bring forward in May 2024, we are taking a careful look at the government's ownsource revenues balanced against the implications for the costs of living and doing business and on the economy in general. The GNWT's reliance on federal transfers for almost 80 percent of our total revenues, coupled with a small tax base, leaves little room to grow revenues in the shortterm. We are building on the work of government renewal initiative in order to find ways to get more value from our spending and to be focused on delivering programs and services that align with this Legislative Assembly's priorities.
Mr. Speaker, the upcoming budget conversations leading to the tabling of the 20242025 Main Estimates will be critical in improving the territory's financial position. I am pleased that this Legislative Assembly has chosen to take the time to do this right so that the priorities of the 20th Legislative Assembly can be reflected in financial plans going forward. Thank you, Mr. Speaker.
Thank you, Minister of Finance. Ministers' statements. Minister of Environment and Climate Change.
