Yukon’s finance minister says too many of the territories residents are being affected by inflation, a global housing crisis and a lack of health-care workers but the government is focused on helping them while the economy is “booming.”
Sandy Silver tabled a $2.08-billion budget Thursday, with a predicted $119-million surplus and money for housing, green infrastructure and a new program aimed at integrating internationally educated health-care workers.
Silver said the territory’s higher wages, low unemployment and “booming economy” makes it a sought-after place to live.
“In the year ahead, our government’s focus is clear. We’re improving life for all Yukoners,” Silver said in his budget speech in the legislature.
“We’re tackling rising costs of living, investing in health care, education, and infrastructure and addressing pressing issues like the climate crisis and substance-use health emergency.”
The budget is made up of $484-million in capital spending and $1.595-billion in operational and maintenance costs.
The official Opposition accuses the government of “bleeding the Yukon dry of money” by increasing net debt for the territory.
With just over 45,000 residents, Yukon is now Canada’s most populated territory. The population jump contributed to an increase in core transfers from Ottawa of about $100-million.
Government documents list the average unemployment rate for Yukon in 2023 as 3.6 per cent, the lowest in Canada.
The territory’s budget includes promises for $27.3-million to build affordable housing and $8.3-million to develop rental homes.
Silver said the territory is expected to continue to show strong economic growth over the next several years.
“Now is not the time to take our foot off the gas. Too many Yukoners are feeling the impacts of the global financial pressures of inflation, the national housing crisis, and the international shortage of health-care workers,” Silver said.
He said the government is supporting struggling families, increasing the minimum wage and introducing a Yukon dental insurance program last year.
He said the Yukon Liberal government will be introducing legislation to create a territorial health authority and announced a new program, using $3.6-million in federal funding, to integrate internationally-trained medical workers into the Yukon system.
Silver said the government will be spending $5.1-million to complete a mental health unit at Whitehorse General Hospital.
The budget also includes $19.3-million to make government buildings more environmentally sustainable, as well as money to tackle “climate-related illnesses” and for flood mapping and forecasting.
Silver said a $50-million contingency fund is in place for unexpected costs.
“As in the past, we anticipate using this contingency on emerging priorities like wildfire and flood response, which have reached historic, unpredictable proportions in recent years,” he said.
The budget predicts the territory will have net financial debt of $488.8-million by the end of 2024-25.
The Yukon Party Opposition said in a statement that the government had pushed debt to historic levels, noting the territory had financial assets in 2021 of more than $182-million and now it’s in debt.
“The reckless spending by the Liberal-NDP coalition will have negative long-term consequences for the territory,” finance critic Brad Cathers said.
“This government’s growth is out of control, with operational spending ballooning almost 10 per cent.”
The budget documents say net debt will grow to $516.8-million next year before it “levels out” and declines to $375.2-million by 2028-29