The Yukon government’s surplus dropped 46 per cent in the 2015-16 fiscal year, the Department of Finance recently reported, but it’s still greater than expected.

In 2014-15, the Yukon recorded a $95-million surplus. That dropped to $51 million in 2015-16, according to the Yukon Public Accounts, the financial statement of the territorial government.

Though the surplus dropped significantly, it is still 34 per cent (about $13 million) higher than what was predicted in the most recent territorial budget.

The last budget estimated the 2015-16 surplus would be $37.7 million.

Both revenues and expenses were lower than expected. These, combined with the Yukon government’s retention of the problematic wastewater treatment plant in Dawson City, account for the change in the surplus, says the report on the Yukon’s finances.

The government currently has a contract with Corix Utilities to manage the wastewater treatment plant for the City of Dawson. The facility has experienced serious problems since it opened in 2012 and is too costly for the community to manage.

The public accounts were audited by the Auditor General of Canada and show that the Yukon has no net debt.

Premier Darrell Pasloski has repeatedly boasted about the Yukon having no net debt.

Alberta and Nunavut also reported no net debt in 2015-16.

In the Tuesday statement, the Yukon Party promised to keep the territory free of net debt.

“The Yukon Party is focused on keeping taxes low and managing taxpayers’ money responsibly,” Pasloski said in the statement on the public accounts sent out Tuesday.

“While other parties make vague promises, Yukoners know that they can count on the Yukon Party to deliver on its commitments while balancing the books and keeping life affordable for families.”

In addition to information on the surplus, the public accounts show that total revenues went down by $5 million, or 0.4 per cent, while expenses went up by $62 million (five per cent).

More than 59 per cent of the $62-million increase is attributed to community and transportation expenses, says the report.

The Yukon brought in $63 million less than expected in 2015-16.

Taxes and general revenues dipped eight per cent ($12 million) from the year before to $143 million, “largely due to lower corporate income tax collected during the year,” says the report.

In July 2014, the corporate income tax rate was cut from four per cent to three per cent.

The Yukon Liberal Party has promised to eliminate this tax.

Income from investments in government businesses, including the Yukon Liquor and Yukon Development corporations, was also down from the previous year, to the tune of $8 million.

In 2015-16, 85 per cent of Yukon government revenues came from the federal government.

Eleven per cent came from taxes and general revenues, such as taxes on income, tobacco, liquor, property, etc., as well as vehicle licensing fees and business fees.

Funding and service agreements accounted for three per cent of revenues, and income from investments in Yukon government corporations amounted to one per cent.

The report also noted that the Yukon’s unemployment rate was about 6.3 per cent in 2015, which was lower than the national average of 6.9 per cent.