Nunavut finance minister tables 2025-26 budget

Nunavut's finance minister tabled a budget Monday that he said reflects the territory's "unwavering commitment" to improving the lives and well-being of residents. 

The budget projects about $3.12 billion in spending in total, with an additional contingency fund of $150 million to cover emergencies, unforeseen events and possible revenue shortfalls.

If that $150 million gets fully used, the territory is projecting an operational deficit of $124 million — its largest ever. If it doesn't use any of that money, it expects a surplus of about $26 million.

According to budget documents, the $3.1 billion in spending this year includes $2.3 billion for programs and departments — roughly $150 million higher than last year — about $350 million for capital projects and about $500 million for other expenditures, the majority of which relate to third-party agreements. 

It'll pay for that largely through federal transfers, with some revenues also coming from taxes and those third-party agreements. In all, it's projecting revenues of about $3.14 billion.

"From constructing much-needed homes to expanding and simplifying access to services, we are making significant strides and creating a lasting impact that will benefit generations to come," Finance Minister Lorne Kusugak said in the Legislative Assembly. 

Kusugak noted there will be a staffing freeze next year, with a proposed exception for the new Elders Secretariat within the Department of Executive and Intergovernmental Affairs. The budget says it'll give the department $1 million and four more staff for the unit. 

Kugusak also said part of the plan for a new Department of Community Services is to establish a "one stop shop" for territorial government services called Service Nunavut. The commitment doesn't have a dollar value attached, but Kusugak said it would be a place where people could apply for documents, access citizen services and get permits. 

Kusugak said the new Department of Transportation and Infrastructure, set to start in April, would get a total of $262.3 million in the upcoming fiscal year, including a nearly $1.5-million increase to operate six new air terminal buildings and $1 million for the Iqaluit airport. 

The Department of Health's budget, meanwhile, would grow by $66 million to a total of more than $580 million. That includes more money for long-term care services, services and supplies, paramedic services, and out-of-territory hospital and doctor services. 

Kusugak also proposed spending $15 million for the Aqqusariaq treatment and recovery centre in Iqaluit, $1.4 million for the long-term care facility in Cambridge Bay, $4.6 million for a long-term care facility in Iqaluit and $1.5 million for a new health-care facility in Qikiqtarjuaq. 

The territory is planning to spent more than $1 million on teaching positions for the Department of Education, and nearly $850,000 to bolster its capacity for human resources.  

Kusugak also said the territory is on track to exceed its commitment to building 1,000 new housing units within the life of the assembly. He said as of the end of 2024, 855 units in various stages of construction were being added to Nunavut's housing supply. 

He said the government would provide the territorial housing corporation with $110 million in capital funding to "keep the progress going," and that $19 million would be spent on retrofitting existing homes and remediating mould. 

The budget also proposes investing $1 million on enhancing heritage facilities and $500,000 on public library infrastructure, as well as $5.54 million for the Inuit Language Implementation Fund. 

MLAs will debate the budget and vote on it before the winter session comes to an end on March 11.