The Yukon’s 2023-24 fiscal year budget is now official and features a slight decrease from the 2022-23 budget, which will expire March 31.

The new budget, tabled in the legislature this afternoon, comes in at $1.938 billion, as compared to last budget of $1.97 billion.

That includes operations and spending of $1.454 billion and capital spending of $484 million. The five-year projection on capital spending is $2.15 billion.

Smokers will be hit in 2023-24.

According to Finance Minister Sandy Silver’s budget address, the tax rate increased from 31 to 32 cents per cigarette as of Jan. 1, 2023.

The Tobacco Tax Act links changes to the tax rate to changes in the Consumer Price Index (CPI). Under the current rate of inflation, the tax rate for tobacco products is expected to rise to 37 cents per cigarette by the end of 2027.

Meanwhile, fuel taxes are expected to remain flat as more Yukoners purchase electric vehicles and other transportation choices.

The transfer payment from Ottawa is expected to be $1.33 billion, up from $1.244.4 billion in 2022-23.

Tax revenue is expected to be $170.9 million, up from $157.7 million in the current fiscal year.

Other revenue, including liquor, licences, registrations and permits, and sale of land, is projected to be $77.5 million, up from $58.1 million last year.

The four highest-spending departments, not surprisingly, are:

• Health and Social Services, at $528,235,000, compared to the 2022-23 forecast of $534,020,000;

• Highways and Public Works, $410,646,000, 2022-23 forecast: $477,415,000;

• Education, $279,461,000, 2022-23 forecast: $272,600,000; and

• Community Services, $196,511,000; 2022-23 forecast: $223,250,000.

The projected surplus in the new budget is $48 million. The last budget’s surplus was projected to be $39.5 million, but is now forecast at nearly $44 million.

The total debt projected, including 2023-24, is $374.8 million.

The projected debt at the end of 2022-23 is projected to be $298.5 million.

Other highlights from Silver’s budget speech include:

• A $50-million contingency fund for emerging priorities including fire and flooding;

• $10 million worth of inflation relief measures, including an extension of the Inflation Relief Rebate, top-ups to social assistance and the Yukon Senior Income Supplement;

• $40 million to stimulate housing development;

• $22.4 million from the Northern Carve Out of the National Co-Investment Fund;

• $26 million for land development projects;

• $10 million to continue the review of health and social services (Putting People First);

• An increase of $3.6 million for the new dental program;

• $4 million to work with health care partners to increase the number of health professionals in the territory;

• $10 million for a mental wellness unit at Whitehorse General;

• $12 million for completion of the new health and wellness centre in Old Crow;

• $27.3 million for new schools notably in Whistle Bend and Burwash Landiing;

• $60 million for climate change initiatives;

• $61.4 million in infrastructure investments like community centres, recreational facilities, boat launches, fire halls, EMS stations public works buildings and water, sewer and other municipal services;

• $2.3 million in capital investments for a Yukon Parks strategy;

• $44.5 million in transportation infrastructure for the $163-million Nitsutlin Bay Bridge project at Teslin;

• $23.8 million for upgrades to the Alaska Highway and North Klondike Highway;

• $13.6 million for the Carmacks Bypass project;

• $3.4 million for Robert Campbell Highway work;

• $6.5 million for roadway safety improvements;

• $25 million for Erik Nielsen Whitehorse International Airport work;

• $24 million for the Dempster Highway fibre optics line project;

• $2 million for the Economic Development Fund;

• $20 million for energy retrofits, renewable projects; and

• $1.7 million to update resource legislation.

“This year’s budget will make life more affordable for Yukoners,” Silver told the legislature.

“It moves our territory forward on reconciliation. It sets out our plan to grow a strong, resilient economy.

“We are putting real money behind our efforts to build a better health and social services system, and we continue to grow our clean, green future, all so that the Yukon can truly be a place that everyone can call home.”