North 2003
Section Index
Government in Northern Canada
STAN: GovernmentNunavut government spending at $843 millionCash reserves to cover deficit / Low corporate taxes an open invitation to entrepreneurs
In its first term, the government of Nunavut laid out the welcome mat to business, becoming a Canadian tax haven with low corporate and personal taxes.
Where the money comes from:
Annual revenue $804.5
Formula financing $664.4
Federal transfers $65.1
Taxes and revenues $74.9
Where the money goes:
Legislative assembly $13
Education $160
Health /Social Services $151.6
Nunavut Housing Corp. $77.5
Justice $46.1
Human Resources $19.4
Culture, Language, $9.2
Sustainable Development $35.3
Nunavut Dev. Corp. $3.5
Community government
and transportation $72
Public Works $60.9
Qulliq Energy $.5
Dept of Finance $44.5
Intergovernmental Affairs $10.5
Capital spending
Public works $10.7
Community gov/transport $27.2
Culture, language, elders, youth $1
Education $24
Health and social serv. $55.8
Sustainable development $2.5
Nunavut housing $20.3The four per cent corporate tax rate has yet to persuade major companies to forsake southern cities, but the new territory is determined to give all the help it can to its own entrepreneurs.
The government relies on federal transfers for 90 per cent of its revenue, but that will change as Nunavut negotiates devolution of federal powers and receives a share of royalty revenues from future resource development.
De-centralization of departments and services is a goal and a challenge facing the territorial government. Ten of its departments are located in different communities.
Administrative regions
Nunavut has three regions: the Baffin in the East, Kivalliq in the centre and the Kitikmeot in the west. There are 25 municipalities, each with administrations.
This year the Nunavut government will spend $843 million and receive only $804.5 million. But it will tap into reserves to end the year with a $2.7 million surplus.
Spending on health and social services is estimated at $207.3 - a quarter of the total budget. Education takes another $183. 9 million for operations and capital projects.
Other budget highlights include:
- $6 million to buy the Sivummut office building in Iqaluit.
- $6.3 million in compensation payments and lost fuel inventory for the "bad gas" debacle.
- $1.6 million to cover municipal fires in Clyde River and Repulse Bay.
- $2 million for curriculum development under Education's language of instruction initiative.
- $1.4 million for new RCMP detachments in Whale Cove and Chesterfield Inlet.
- $1 million for culture, language education and youth.
- $16.3 million in sustainable grants and contributions.
- $10 million raise in Community government capital budget for basic water and sewage projects.
- $500,000 to start the Qulliq Energy Corp.
-Updated August 2003
