Revised - The Yukon’s 2023-24 fiscal year budget is now official, and features a slight decrease from the 2022-23 budget, which will expire March 31.

The new blueprint, tabled in the legislature Thursday afternoon, comes in at $1.938 billion, as compared to the last budget of $1.97 billion.

That includes operations and maintenance spending of $1.454 billion and capital spending of $484 million. The five-year projection on capital spending is $2.15 billion.

Smokers will take a hit in 2023-24.

According to Finance Minister Sandy Silver’s budget address, the tax rate increased from 31 to 32 cents per cigarette as of Jan. 1, 2023.

The Tobacco Tax Act links changes to the tax rate to changes in the Consumer Price Index (CPI). Under the current rate of inflation, the tax rate for tobacco products is expected to rise to 37 cents per cigarette by the end of 2027.

Meanwhile, fuel taxes are expected to remain flat as more Yukoners purchase electric vehicles and make alternative transportation choices.

There are no other increases in taxes in the budget, including income and liquor taxes.

The transfer payment from Ottawa is expected to be $1.33 billion, up from $1.244.4 billion in 2022-23.

Tax revenue is forecast to be $170.9 million, up from $157.7 million in the current fiscal year.

Other revenue, including liquor, licences, registrations and permits, and sale of land, is projected to be $77.5 million, up from $58.1 million last year.

The four highest-spending departments, not surprisingly, are:

Health and Social Services, at $528,235,000, compared to the 2022-23 forecast of $534,020,000;

Highways and Public Works, $410,646,000, 2022-23 forecast: $477,415,000;

Education, $279,461,000, 2022-23 forecast: $272,600,000; and

Community Services, $196,511,000; 2022-23 forecast: $223,250,000.

The projected surplus in the new budget is $48 million. The last budget’s surplus was projected to be $39.5 million, but is now forecast at nearly $44 million.

The total debt projected, including 2023-24, is $374.8 million.

The projected debt at the end of 2022-23 is projected to be $298.5 million.

The total amount for public service wages and benefits is $637,981,000.

Other highlights from Silver’s budget speech include:

A $50-million contingency fund for emerging priorities, including fire and flooding;

$10 million worth of inflation relief measures, including an extension of the Inflation Relief Rebate, top-ups to social assistance and the Yukon Senior Income Supplement;

$40 million to stimulate housing development;

$22.4 million from the Northern Carve Out of the National Co-Investment Fund;

$26 million for land development projects;

$10 million to continue the review of health and social services (Putting People First);

An increase of $3.6 million for the new dental program;

$4 million to work with health care partners to increase the number of health professionals in the territory;

$10 million for a mental wellness unit at Whitehorse General;

$12 million for completion of the new health and wellness centre in Old Crow;

$27.3 million for new schools, notably in Whistle Bend and Burwash Landing;

$60 million for climate change initiatives;

$61.4 million in infrastructure investments like community centres, recreational facilities, boat launches, fire halls, EMS stations, public works buildings and water, sewer and other municipal services;

$2.3 million in capital investments for a Yukon Parks strategy;

$44.5 million in transportation infrastructure for the $163-million Nitsutlin Bay Bridge project at Teslin;

$23.8 million for upgrades to the Alaska and North Klondike Highways;

$13.6 million for the Carmacks Bypass a;

$3.4 million for Robert Campbell Highway work;

$6.5 million for roadway safety improvements;

$25 million for Erik Nielsen Whitehorse International Airport work;

$24 million for the Dempster Highway fibre optics line project;

$2 million for the Economic Development Fund;

$20 million for energy retrofits, renewable projects; and

$1.7 million to update resource legislation.

“This year’s budget will make life more affordable for Yukoners,” Silver told the legislature.

“It moves our territory forward on reconciliation. It sets out our plan to grow a strong, resilient economy.

“We are putting real money behind our efforts to build a better health and social services system, and we continue to grow our clean, green future, all so that the Yukon can truly be a place that everyone can call home.”

Premier Ranj Pallai, prior to introducing Silver for a media scrum Thursday, told reporters, “Our team has worked hard to create a plan that will help move the territory forward to the benefit of all Yukoners. I’m very proud of this budget.”

Pillai also commented on how pleased he was that Silver is staying on as Finance minister.

“How could I not have minister Silver in this role, really, based on the success and job that he’s done?” he asked.

Pillai said the Yukon received an A- financial rating from the CD Howe Institute, the second-highest in the country.

“This was largely based again on presenting budgets in a consistent manner and our financial statements.”

Pillai added that the Yukon also had a AA rating from S and P Global that demonstrates the financial health of the territory and that it’s “strong and well-managed.”

Silver was asked why there is a decrease in funding in Highways and Public Works (about $67 million) and Community Services ($27 million).

He cited increased spending during the COVID-19 pandemic as the reason why spending has now dropped back down to pre-pandemic levels.

“We really did make a conscientious effort to build in those years,” related Silver.

“We also inherited an infrastructure deficit; the Yukon Party didn’t build.

“There was federal opportunities that we seized; for example, the Investing in Canada infrastructure projects.”

Silver said, however, that they’re treading very cautiously moving forward.

“We have to take a look at recoverables. If we have the opportunity here in the territories, plural, to have 75-25 (per cent of budget) spending from the federal government, we need to maximize those things.

“We need to be very smart about how we build but we also have to – when others are not building – the city, for example – and others privately are not building, we need to take up some of that space.”

Silver said now that the COVID-19 pandemic is over, the government needs a long-term strategy to “right-size” the budget.

“We have to be very conscientious. There may be a recession coming in Canada.”

Silver added that the government has $100 million set aside right now in a surplus and in contingency funds as well as a “rainy day and sunny day” fund.

“Rainy day floods and sunny day fires.”