NDP HAS NO CONFIDENCE IN FENTIE GOVERNMENT BUDGETING
The budget tabled today by the Yukon Party government lacks credibility, fails to reflect the huge debt incurred by two government corporations and confirms the territory is as dependent as ever on federal transfer payments, says New Democratic Party leader Liz Hanson.
“Based on what we have seen over the years from this government, the surplus it is projecting will not materialize,” Hanson adds. “History shows this government will invariably spend more money than it takes in.
“The government is projecting a $38-million surplus. But it has a habit of coming back to the House several times during the year to ask for more money. We have seen this pattern repeated year after year. We have gone from $122 million in the government’s savings account in 2006 to only $18 million as of March 31.”
Finance department officials also confirmed today the Yukon Hospital Corporation and the Yukon Energy Corporation have to date borrowed $162.2 million, saddling Yukoners with debt for the next 30 years. That money is not reflected in the budget documents tabled in the Legislative Assembly.
“As well, our dependency on Ottawa has not changed significantly over the eight and half years the Fentie government has been in office,” she notes.
Budget documents show just 11.1 per cent of the $1.090-billion budget comes from own-sourced revenues. The balance of the revenues are from transfer payments from Ottawa.
“I believe the government’s pattern of overspending will continue unabated because this is an election year,” Hanson says. “The next government will be left with a depleted savings account, a large and growing debt and an economy that is overly dependent on a single sector with a history of going from boom to bust.”