The Yukon announced it would cut its personal income tax rates after a record-setting budget surplus.
During a budget address on Thursday, Premier and Finance Minister Darrell Pasloski said that the territory expects to be a soaring $1.37 billion in the black for the 2015-16 fiscal year.
On Tuesday, the government had announced that those employed in the Yukon would pay less income tax. As in, an annual savings of $5.5 million for residents. There are no tax increases in the budget either.
The budget also includes $43 million in carry-over funds that were not spent in the fiscal year prior.
What’s the reason for The Yukon’s financial success?
“We believe in managing finances in a way that ensures we have money when we need it most,” Premier and Finance Minister Darrell Pasloski told the legislative assembly on the first day of the spring session.
He says the tax relief is the result of their fiscal management over the past decade.
As for the new budget, annual transfer payments from the federal government will come to $874 million, a 2.6-per cent increase over last year’s $851 million in federal funding. Another $179 million in federal transfers and recoveries from Ottawa, raises the total federal contribution in the budget to $1.05 billion for this fiscal year.
The territorial government is projected to generate $127 million in revenue through its own taxes, in addition to $43 million in fees and services. This includes an estimated profit of $8 million from liquor sales and another $4.7 million from motor vehicle licensing and registration.
Most of the operation and maintenance funding for this fiscal year – $327 million – will go to the Department of Health and Social Services, followed by the Department of Education, with an estimated budget of $155 million.
Yukon, here we come.