Source: Government of Canada regional news
The Government of Canada has agreed to increase the Government of Yukon’s borrowing limit from $800 million to $1.2 billion, providing the territory with greater financial flexibility and long-term financial sustainability.
The Yukon is a growing and dynamic territory, with an increasing population, expanding communities and increasing demands for essential services. The Government of Yukon needs the flexibility provided by borrowing to support the sustainable development and growth that Yukoners require.
To date, the government has operated under a strong financial plan that did not require significant borrowing. Recent unforeseen challenges – such as urgent environmental responses, pressures on the health care system and the continued need to address issues related to climate change – have highlighted the value of increased flexibility to manage cashflows throughout the year and of using tools beyond the government’s line of credit.
Borrowing remains one of the tools available to the government to help meet immediate financial obligations while having the flexibility to continue to invest in essential infrastructure and services that benefit the entire Yukon and address critical responses that are becoming more common.
The Yukon remains in a strong financial position, having recently reaffirmed its “AA Stable” credit rating from S&P Global Ratings and maintaining a low net debt-to-GDP ratio, which is among the lowest in Canada.