Nunavut government tables $2.1B 'comfortable' budget

Nunavut's budget for the 2024-2025 fiscal year will, among other things, focus on following through on the government's housing promises and will increase staff in the Department of Family Services. 

Nunavut Finance Minister Lorne Kusugak tabled the $2.1-billion budget in the Legislative Assembly on Monday, referring to it as a "comfortable" budget.

"We're maintaining what we've started. I think it's one that gives everybody a bit of comfort," Kusugak told reporters at a news conference before the budget was tabled. 

This budget is in addition to the $355.8 million capital estimates approved last October. 

Nearly a quarter of the territory's budget this year will go to the Department of Health, representing an increase over last year of $40 million.

Another 14.5 per cent of spending in the budget will go to Community and Government Services, 13 per cent to Education, and 12.6 per cent to the Nunavut Housing Corporation. 

Of the health department's $40-million increase, $15 million will go to agency nursing contracts and another $14 million for paramedic support services. 

31 new jobs at Family Services 

One of the biggest changes in spending lies with the Department of Family Services. The government will spend $3.1 million to fund 31 new staff positions at the department. 

This year's budget also includes an overall funding increase for that department of $15.6 million.

Kusugak said that increase is a response to a review published last year by Canada's auditor general that found Nunavut is failing to protect vulnerable children and youth in the territory. 

"We're beginning to address those very important issues," Kusugak said. "We'll begin to tackle it, and I think this budget addresses it upfront."

Asked where the 31 new positions would be created in the territory, a spokesperson for Family Services said the department could not disclose that information until the budget is approved by the Legislative Assembly. 

Another $157 million of the budget will go to community infrastructure, including a new wastewater plant in Kinngait expected to be complete in 2026-27. 

The budget also dedicates $3.6 million to municipal governments to hire staff to deliver municipal programs and services. 

About $1 million will also go toward expanding the social work program at Nunavut Arctic College. 

Minister says territory's housing plan on track 

The budget allocates $82.7 million to building new public and staff housing. 

Kusugak said that's part of Nunavut's goal to build 3,000 homes by 2030. So far, 500 homes have been approved and the territory is on track to have 1,000 total units approved by the end of 2025. 

"I think by 2025 we'll be really, really close, if not further," Kusugak said of meeting the territory's housing targets. 

Kusugak said a lack of infrastructure and land availability means houses can't be built as quickly as some people expect. 

"You have to try to keep the keel even," he said. 

Budget doubles contingency fund, projects deficit 

The territory will also set aside a contingency fund of $100 million for this year, which is exactly double what it set aside last year. It's to account for any unforeseen costs in things such as infrastructure or capital projects.

"It won't put us in an overall deficit situation," Kusugak said. 

If that entire contingency fund is spent, the government will end the year with a deficit of $21 million. 

Last year, the budget's projected deficit was $8.2 million. 

The budget will now be presented to the Legislative Assembly and will be voted on by MLAs in the coming weeks.