New N.W.T. finance minister delivers glum fiscal outlook

Northwest Territories Finance Minister Caroline Wawzonek introduced her first fiscal update Wednesday by asking her colleagues in the legislature to be realistic in their expectations of how quickly they can make positive change. 

Wawzonek characterized the economy as "stabilized, but stagnant," noting that the diamond mines are in decline and that new mines may not come online until years after the current ones cease operations.

For the past five years, she said, the territory has seen real GDP growth under one per cent — less than half the growth rate for the rest of Canada. 

"We expect the final data to show that in 2019, the economy was largely supported by public sector investment."

Wawzonek also noted that the government is collecting $80 million less in revenue than it budgeted for this year, forcing it to borrow more than it had planned. That's pushed the territory closer to its federally-imposed borrowing limit, leaving little wiggle room in the event of further financial shocks. 

Wawzonek said the solution to the slowing economy is investing in people and businesses who can build a more diverse economy that is less susceptible to global forces outside of its control. 

And she promises to do that without big cuts to public spending. 

"That's not the intention, the intention is to be creative and efficient so that we can have something that's more sustainable and do that over the course of the four-year term."

Cabinet plans to develop a fiscal strategy over the next couple of months. 

Wawzonek said this government's first budget will be a "collective effort" involving regular members.