The federal government has approved a significant increase in the debt ceiling for the Yukon government. An order-in-council issued on October 9 will raise the territory’s borrowing limit from $1.2 billion to $3 billion, based on the recommendation of the federal finance minister. The Yukon’s financial plan indicated that it was nearing its previous cap by approximately $32 million.
Premier and Finance Minister Currie Dixon previously expressed in an interview with CBC that he would contemplate stepping down if the government exceeded its debt threshold. Despite this, Dixon remained confident that such a scenario would be avoided. “We are essentially at the limit,” he remarked, emphasizing the importance of maintaining a financial cushion to account for unforeseen circumstances throughout the budgetary cycle.
Dixon highlighted the need to uphold a buffer between the current borrowing levels and the absolute cap, stating, “We can’t substantially borrow any more right now.” He stressed the necessity of prudence in financial management, citing the unpredictable nature of budgetary challenges that may arise.
Further updates on this matter are expected in the future.