The federal government has raised the GNWT's borrowing limit to $3.1 billion from $1.8 billion.

The GNWT was less than two per cent from reaching its $1.8 billion debt wall prior to the increase. It noted that its ability to repay debt remains affordable as less than five per cent of total revenue available to the territorial government goes toward debt payments. In addition, Fitch and MoodySA国际影视传媒檚 Investor Services give the NWT high credit ratings.

"This flexibility strengthens the GNWTSA国际影视传媒檚 ability to respond to expenditure shocks, such as effects of extreme weather events like floods and wildfires, and address implications of potential US tariffs on the Northwest TerritoriesSA国际影视传媒� economy," the territorial government stated in a news release issued March 3. "The increase also ensures that the GNWT has the fiscal capacity and flexibility to continue to support economic growth through much-needed investments in infrastructure."

The government also stated that it remains committed to the responsible borrowing guidelines contained in its Fiscal Responsibility Policy, "ensuring that longer term borrowing is used only for infrastructure investments to deliver programs and services for Northerners and to support the economy."

SA国际影视传媒淭his increase provides the Government of the Northwest Territories with the flexibility needed to pursue new opportunities for Northerners and respond to fiscal shocks," said NWT Finance Minister Caroline Wawzonek. "We will continue to work closely with the Government of Canada and other partners to maximize investments that support economic resilience and community stability while we work collectively to achieve long-term fiscal sustainability.SA国际影视传媒� 

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. This is done periodically by each government.

Yukon is currently capped at $1.2 billion while Nunavut's limit is $750 million.

The GNWTSA国际影视传媒檚 borrowing limit was last increased in 2020 when it increased to $1.8 billion from $1.3 billion.