Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of Finance. So on March 3rd, the GNWT received an increase to the federally-imposed debt limit from 1.8 to $3.1 billion. Can the Minister explain if the extent of such a large increase to the borrowing limit is only to respond to expenditure shocks like climate disaster impacts? Thank you, Mr. Speaker.
Thank you, Member from Great Slave. Minister of Finance.
Mr. Speaker, no, that's not the only reason. The situation we faced over the last several years of climate impacts and fiscal challenges has put us in a situation where the significant sized operating surpluses that we've been managing to create for ourselves, rather than having those available to reinvest or to cushion us, are winding up being used for those purposes and so that means that we then take on more debt to fund operations and to fund our investment and capital. So looking, then, over the next few years and, frankly, seeing, you know, what is happening and what may be coming over the next few years, whether it's climate change or other geopolitical risks, puts us in a situation that to continue to ensure that we have a borrowing room available to us and what that borrowing is likely to be required us to go and seek a borrowing limit increase. Obviously, we were coming up right close to what that borrowing limit would be. The fiscal responsibility policy for us created an internal amount or an internal threshold where if we hit it, we would -- that would trigger our own internal obligation to go and ask. So between those two factors, Mr. Speaker, that's what led to the request. Thank you.
Thank you, Mr. Speaker. Mr. Speaker, will the Minister consider revising the fiscal responsibility policy so that the Assembly can invest in discrete targeted ways to alleviate some of the social issues we have collectively prioritized? Thank you, Mr. Speaker.
Thank you, Mr. Speaker. The fiscal responsibility policy puts up some guardrails around how we take on debt and for our debt management. But -- and while that's obviously something I'm happy to talk about that, and it's important to maintain those guardrails, we want to be in a situation where we're utilizing our debt ideally to invest in things that benefit future generations since those would be the generations that would be ultimately be paying off debts whereas operational expenditures, programs and services of today, ideally are funded by the operational budgets that we have today. So, you know, Mr. Speaker, there's no reason that this Assembly and that the government can't continue to make choices around operations and spending. The fiscal responsibility policy tries to simply put some guardrails around when we take on the debt to do the things that we need to do as a government. But, again, shouldn't create any kind of mental or political barriers to ensuring that we're meeting the responsibilities of the Assembly. Thank you.
Thank you, Minister of Finance. Oral questions. Final supplementary. Member from Great Slave.
Thank you, Mr. Speaker. Mr. Speaker, I was reminded by a constituent before this session that in the 1990s, the federal government decided to make reductions on the health and social transfer payments. Such a situation doesn't seem impossible now. So, bluntly, the TFF and equalization payments could be on the chopping block in a new government. Can the Minister broadly explain the GNWT's approach to TFF negotiations which are ongoing and upcoming and what she hopes to see. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. Mr. Speaker, I obviously have not a whole lot of control over what a new federal government may or may not do to funding levels that support all three territories and to, frankly, 40 percent of Canada's land mass. Certainly, with the current geopolitical climate would certainly hope that Ottawa recognizes the importance of investing in 40 percent of Canada's land mass as a statement about Arctic sovereignty, as a statement about Arctic security. The territorial formula financing approach for us comes up due in 2029, but we are engaging with the other two territories. We want to work together in terms of ensuring that when one of -- that as we all move forward, that we're moving forward understanding, you know, what each one may be asking or how we want to approach this. And what I can say lastly, Mr. Speaker, with respect to what we're doing today, we are re-examining the level of funding that we receive, the kinds of inputs that go into the formula that Ottawa then utilizes to determine the amount, and to really look at whether or not some of the inputs that are there and some of what the, you know, considerations that are given have actually kept pace with the reality of the costs and the needs and the costs of providing for the needs of the people of the Northwest Territories. So that is not an uncomplicated economic analysis and position to make. That's why we're getting that started now so that we're not waiting until 2029 to get there but we can begin that process and that advocacy today. Thank you.
Thank you, Minister of Finance. Oral questions. Member from Monfwi.
