Canadian tax alert
2015-2016 Nunavut budget highlights
On February 25, 2015, Minister of Finance Keith Peterson presented Nunavut’s 2015-2016 budget. Mr. Peterson stated that the mining industry, the Iqaluit airport project and the Canadian High Artic Research Station represent three significant growth drivers which helped the Nunavut economy to grow 3.5% last year. He tempered his optimism in view of the current global collapse in oil prices which may affect investment in energy sectors like petroleum. Here are some of the budget highlights:
- A $22.8 million operating surplus is projected for 2015-2016, down from $35.7 million for 2014-2015.
- The government continues to rely on federal funding for most of its revenues.
- Revenues are expected to increase by 5% and departmental expenditures are expected to increase by 9%.
- Nominal GDP is expected to increase by 9.2% and real GDP is expected to increase by 6.8%.
- Nunavut’s unemployment rate remains high at 13.8% per 2014 statistics.
- No new taxes or tax changes are introduced.
For further details, we refer you to the Department of Finance website.