The Yukon government introduced its supplementary budget estimates last Thursday, the opening day of the fall legislative sitting.

Premier and Finance Minister Sandy Silver said they include increases of $58.4 million in operations and maintenance and $13.8 million in gross capital expenditures.

Early last March, shortly before calling the April territorial election, Silver tabled a record budget valued at $1.786 billion for the current fiscal year. That was comprised of an estimated $1.35 billion for operations and maintenance costs, and a record $434 million for capital works projects.

Supplementary estimates are used annually by a government to account for spending that is unforeseen at the time of setting the annual budget. 

Silver said the spending boosts are largely the result of COVID-19 spending, the response to the record flooding this past summer and additional support for families accessing early learning and childcare programs, including:

• nearly $21 million to support the tourism and aviation sectors, as well as public health measures in response to COVID-19;

• more than $11 million to support the response to the recovery of the Southern Lakes and Lake Laberge floods; and

• almost $10 million for the Yukon’s univeral Early Learning and Childcare intiatives, an increase that is 100 per cent recoverable from the federal government.

Other spending involves:

• $3.7 million to develop rural lots in rural communities such as Haines Junction, Dawson City and Watson Lake;

• $2.4 million to create modular classrooms at the Robert Service School in Dawson;

• $1.7 million for renovations needed at Copper Ridge Place; and

• $1 million for program increases under the Innovative and Renewable Energy Initiative that will help increase the supply of renewable energy and reduce diesel consumption.

“We’re very thankful to be back in the legislative assembly,” Silver said in a news conference last Thursday.

“We’ve been busy; there’s been a lot of work since the spring.

“The supplementary budget I introduced today is focused on the support of Yukoners as we continue to manage the COVID-19 pandemic and getting on to that pathway to recovery,” the premier added.

“It’s also about supporting Yukoners who were impacted by the flooding this summer. We have mounted the greatest relief ever this summer.”

Silver said he’s looking forward to debating the budget over the next few weeks.

“We’ll definitely get into the nitty-gritty of the budget. The floods were a massive expense, and as we move from relief to recovery, there will be some added expenses there. There’s a lot of different pressures on the budget.”

With a total of $72.2 million in new expenditures, the First Supplementary Estimates represent an increase of four per cent in additional spending over the 2021-22 main estimates.

This increase is offset by $49.4 million in recoverable funding from Canada and third-parties.

The 2021-22 Interim Economic and Fiscal Update was also released last Thursday.

The mid-year update shows that while COVID-19 continues to impact communities around the world, the Yukon anticipates that the territory’s Gross Domestic Product (GDP) will grow by six per cent in 2021 and 8.1 per cent in 2022.

“Our government remains focused on supporting Yukoners, whether that means helping individuals and Yukon businesses, investing in our resilient tourism industry or helping homeowners navigate an historic flooding event in our territory,” said Silver.

“The updated forecast shows that our economy remains strong as our territory forges ahead on the path to recovery from COVID-19. Thank you to the public health experts who we rely on to stay safe and to Yukoners at all levels that have contributed to strengthening our communities.”

The update shows that the removal of internal border restrictions and the loosening of international restrictions support the forecast of a recovery in local tourism activity, with visitations expected to return to pre-pandemic levels in 2023.

Job growth is forecast at 1.4 per cent in 2021 as employment growth is expected to pick up next year, partially based on a recovery of the tourism sector.

“Despite disruptions in the labour market over the last two years, household income has continued to grow, supported in large part by government income support,” the government said in a statement.

The average weekly earnings rose to $1,285 in June 2021, up 1.4 per cent from a year earlier.

“Growing incomes are translating into higher consumer spending,” the government said.

“Retail sales have completely recovered pandemic losses with 2021 on track to post another record level.”

Retail sales are now forecast at $980 million for 2021, 8.9 per cent higher than the forecast in the March outlook, reflecting stronger-than-expected sales to date.