Yukon Liberals table new budget, with some NDP flavour and lower deficit

Premier and Finance Minister Sandy Silver tabled a revised Yukon budget Thursday with new spending and a new, smaller forecast deficit of $6.6 million.

The revised 2021-22 financial outlook reflects the confidence and supply agreement (CASA) between the Liberals and the NDP.

The deal means the Liberal minority government will get help passing their budget and confidence bills and the New Democrats are getting financial backing for some of their top election priorities.

The budget now includes $1 million to address "public health impacts of opioids and other drugs for those living with addiction."

This is an item that NDP Leader Kate White said she is proud her party was able to get in the new budget as a result of the agreement.

"Not only is it the government saying that they're looking into it, but now it's got a budgetary line item and there is a timeline," she said.

She added work on the program would start within six months.

"I am really proud that we've gotten the government to actually put money behind ... this life saving idea," White said.

The budget also now includes $500,000 to start developing a plan to give dental benefits to uninsured Yukoners. That's another major NDP campaign platform promise that was also recommended in the Putting People First report on health care reform. 

The original Liberal budget was tabled in March right before the election was called, and was never passed.

Silver said the new budget shows a government continuing to invest in the health and well-being of Yukoners in response to COVID-19, while supporting families and Yukon's "green economy."

He said adding new spending and working with the NDP was a smooth process overall.

"There are some increased dollars in there for some specific parts of CASA which really expedite our Putting People First plan on some specific items, and [I'm] happy to do so," said Silver.

New budget breakdown

The annual deficit and net financial debt are both projected to decrease in the new budget.

The annual deficit dropped from $12.7 million to $6.6 million, while net financial debt decreased from $175.4 million to $169.6 million.

These changes are largely driven by federal cash for public health initiatives and COVID-19 response efforts.

The revised budget now includes $6.4 million in Territorial Health Investment Fund transfers and $5.5 million in COVID-19 supports from the federal government which came through since March.

Operations and maintenance spending is now up to $1.36 billion, while operations and maintenance recoveries are up from $100.4 million to $112.3 million.

Capital spending and capital recoveries are projected to stay the same at $434.3 million and $159.4 million respectively.

Yukon Party will not support budget, Dixon says

Yukon Party Leader Currie Dixon said his party will not be supporting the budget.

"There's things in there that we're supportive of, there's things in there that we oppose," said Dixon. "But overall, we oppose the direction the Liberals are going,"

He said while additional support from the federal government is a positive development, it doesn't change the spending patterns of the Liberals.

"The overall state of the public finances in the territory is concerning. We're spending faster than the money is coming in," he said. "That's a function of poor decision making by the current government."