Revised - It’s another high-spending budget for the Yukon government.

Premier Sandy Silver, who is also the Finance minister, introduced his latest, $1.97-billion budget Thursday afternoon in the legislature.

“This budget will make sure all Yukoners benefit from our territory’s historic economic growth,” Silver said in his budget address.

“We are improving access to housing through strategic investments and innovative partnerships.

“We are prioritizing health and safety as we create more effective and sustainable health and social support systems to better meet the need of all Yukoners.

“We are empowering the next generation by making life more affordable for families and modernizing the Yukon’s education system,” Silver told the house.

“We are creating a diverse, resilient and green economy that will contribute to healthy, vibrant and sustainable communities across the territory.”

Then came the numbers.

The federal transfer payment to the Yukon is about $1.5 billion this year.

The 2022-23 fiscal year budget includes $1.97 billion in planned spending, Silver informed MLAs.

That compares to an estimated $1.62 billion for the current fiscal year, which will end March 31.

“Of this, a record $546.5 million in capital expenditures is identified, representing a 26 per cent increase from last year and nearly double the capital budget from just five years ago,” the premier said. (See details, p. 6.)

The operations and maintenance expenditures account for a total of $1.42 billion.

“Budgets are fundamentally about choices,” Silver said.

“With limited resources, choices must be made about where to focus government spending to ensure it is responsive to the needs of the present while creating the conditions for prosperity in the future.

“This budget addresses critical needs in the territory while making necessary investment to make sure all Yukoners benefit from our territory’s historic economic growth.”

During a media scrum following the address, Silver noted the record spending comes without any new taxation, something he is pleased with.

“We have not made any new taxes in this budget, and no new fees and no new taxes.”

As for how the government will “sell” its record-setting budget to the public, Silver said it was a fair question.

“How much is enough?” he asked. “How much can we sustain over a long-term basis? These are excellent questions.

“We’ve done an awful lot of ‘catch-up and keep-up’ in our first few years,” Silver explained.

“Promising a whole bunch of things in the spring budget and not being able to deliver on them doesn’t help industry grow. Now what you’re seeing here is a steady progression into the future with half-a-billion dollars in spending.

“We really need to invest heavily in housing, we need to invest in recreation facilities.

“We’re maintaining a surplus, and we’re exponentially increasing the capital dollars going out the door. We’re doing a lot of work to keep an eye on what’s fiscally responsible.”

The main estimates show an annual surplus of $39.5 million with year-end net debt of $207.5 million.

In his 65-minute budget speech, Silver said, “The Yukon’s economy is seeing tremendous growth that truly set it apart from the rest of Canada,” Silver added. The government is forecasting “robust economic growth of 9.6 per cent in 2022, along with continued growth each year out to 2026.”

During the scrum, Silver addressed that forecast in some detail.

“That’s the largest estimate I’ve ever seen in my 10 or 11 years in politics. It’s nice to see these estimates, but I’m never going to guarantee it’s going to come. If you look at the forecasts over the last five years and the reality of our economy, they’ve been really good. I have more confidence in the private sector, and more confidence in this government will have the money there.”

“The Yukon’s economy is seeing tremendous growth that truly sets it apart from the rest of Canada,” the premier said in his speech.

“Indeed, our economy continues to see strong growth despite the impacts of COVID-19.”

In 2020, the Yukon had the strongest GDP growth in the country, and was one of only two jurisdictions to experience GDP growth, Silver noted.

“We also continue to have the lowest unemployment rate in the country, as we have had for much of the last few years.”

According to the Finance minister, “This year’s budget shows a surplus of $39.5 million, which reflects our government’s enduring commitment to responsible fiscal management even in the face of COVID-19.”

Silver also touched on his government’s new five-year capital plan.

“I am very pleased to present the Government of Yukon’s latest five-year capital plan, which includes average annual spending of $519 million for a total of nearly $2.6 billion in spending.”

Last year’s plan included $434 million in spending. The total for this budget is $546.5 million.

“I am proud to once again deliver a balanced budget that reflects the prudent fiscal management Yukoners expect from their government and which they deserve,” Silver added.

Among the other highlights, the budget includes more than $60 million for housing initiatives across the Yukon.

“We are investing $255 million in capital over the next five years to support access to stable, affordable housing and allow for future development,” Silver said.

“Over $5.5 million in this year’s budget will support our government’s response to the Substance Abuse Health Emergency.”

That emergency, spurred by the territory’s high numbers of opioids-related deaths, was formally declared on Jan. 20.

“More than $11.6 million in this year’s budget is dedicated to the Health and Social Services resources necessary to manage the ongoing risk of COVID-19 in the territory,” the premier said.

“We also have included a $10-million COVID-19 contingency fund to ensure we can respond effectively as we move from pandemic to endemic.”

The operations and maintenance section of the budget ($1.42 billion) reflects a 4.6 per cent increase over the record 2021-22 main estimates.

“The spending increase is driven by investments in new and expanded health services,” Silver said.

Last year, the operations and maintenance budget was estimated at $1.36 billion.

The Department of Health and Social Services account for more than $563 million. It’s the highest-spending department, followed by Community and Transportation at nearly $432 million.

The Department of Education is budgeted at nearly $224 million.

The Department of Tourism and Culture is at the bottom of the departmental pile for budgets, with just less than $91 million.

The government will table a $410.7 million Interim Supply Bill to fund operations and maintenance and capital spending for April and May while the full year of 2022-23 spending authority is debated.,

Of that amount, $321.1 million is for O&M and $89.6 million is for capital expenditures.

Also to be tabled is $10.9 million in supplementary spending for the 2021-22 fiscal year. This includes a $24.7 million increase in O&M spending, with an offsetting increase of $3.1 million in recoveries, and a $10.8 million decrease in capital spending, with an offsetting decrease of $13.1 million in recoveries.

A revised surplus of $25.5 million is forecast for 2021-22.

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