Premier Currie Dixon previously said he would consider resigning if territory breached limit
The federal government has agreed to more than double the Yukon government’s debt cap.
According to an order-in-council dated Oct. 9, the territory’s borrowing limit will be raised to $3 billion from $1.2 billion, on the recommendation of the federal finance minister.
The territorial budget estimated that the Yukon was only about $32 million away from hitting its previous cap.
Premier and Finance Minister Currie Dixon told CBC over the summer that he would consider resigning if his government breached its debt limit, but he remained optimistic that wouldn’t happen.
“We are essentially at the limit,” Dixon said.
“We can’t substantially borrow any more right now,” he said. “We have always maintained that we need to maintain a buffer between where we’re at and the actual hard cap itself, because you never know what could happen over the course of a budget year.”
Related stories from around the North:
Canada: Nunavut is signing a devolution deal. Here’s how it worked in the Yukon and N.W.T., CBC News
