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.
By increasing the Government of Yukon’s borrowing limit, we are ensuring the territory has the necessary options to access financing and the ability to make the strategic investments required to meet the needs of Yukoners. This is a crucial step towards a stronger future for the Yukon, providing the room needed to grow our economy and invest in a sustainable, resilient future.
-
The government’s most recent update on its borrowing was published in the 2023–24 Public Accounts. On March 31, 2024, borrowing totalled $375 million.
-
The Yukon’s net debt-to-GDP ratio is among the lowest in Canada.
-
The borrowing limits of all three territories are set by regulations under the respective territorial acts. Requests for increases to these borrowing limits are submitted to the federal government and changes require federal regulation amendments. This is done periodically by each government.
-
In 2009, the borrowing limit was increased to $300 million from $138 million. In 2012, it was raised to $400 million, and in 2020 it was again increased to $800 million.
Laura Seeley
Cabinet Communications
867-332-7627
[email protected]
Eric Clement
Finance
867-393-6482
[email protected]