Nunavut’s federal borrowing limit rises to $1.05B

Nunavut can now borrow up to $1.05 billion.

The federal government has increased the territory’s borrowing limit, up from $750 million, Nunavut Finance Minister Lorne Kusugak announced last week in the legislative assembly.

“We have carefully managed our borrowing under the previous limit, ensuring funds were used wisely,” Kusugak said in a statement to MLAs.

“With this new limit, we and future governments can better plan for investments and address Nunavut’s infrastructure needs.”

The federal Department of Finance sets out how much the three territories can borrow. Nunavut has the lowest borrowing limit of the territories. The Northwest Territories’ limit is $3.1 billion and Yukon’s is $1.2 billion.

The last time Nunavut’s borrowing limit was increased was in 2020, when it rose to $750 million from $650 million.

In documents provided by Nunavut’s Finance Department when the budget was introduced Feb. 24, the total amount borrowed was listed at $339.6 million as of 2024-25. The total borrowed amount is projected to be lower for the 2025-26 fiscal year at $308 million, or just under one-third of the territory’s updated federal limit.

The territory’s budget lists borrowing separately from the $2.8 billion in federal money the Government of Nunavut is expected to receive for this coming fiscal year.

In the legislature last week, Kusugak told MLAs the increased limit isn’t an opportunity to take on “unnecessary debt.”

“The Government of Nunavut will continue to borrow responsibly, focusing on key projects that benefit Nunavummiut,” he said.

“This expanded capacity allows us to invest in housing, transportation, and other essential infrastructure, while keeping our finances sustainable.”

With a territorial election set for Oct. 27, Kusugak said he doesn’t expect the current government to tap into that larger pool of money.

The next government will have that debt cap available to draw on “should the need arise,” he said.