On Thursday, March 19, Premier Currie Dixon tabled Budget 2026 in the Yukon Legislative Assembly. The budget covers the fiscal year from April 1, 2026, to March 31, 2027.
Budget 2026 is a response to the challenging state of the territory’s finances. It represents the Government of Yukon’s first steps towards getting the territory’s fiscal house back in order.
Budget 2026 overview:
- Budget 2026 totals $2.46 billion, with $2.07 billion in operation and maintenance expenses and $385 million in capital spending.
- Budget 2026 forecasts an $81.8 million deficit to support critical investments in core areas such as improving the affordability and reliability of the Yukon’s energy grid, and in health care, housing, education and public safety.
- Net debt is projected to be $804.2 million by the end of the fiscal year.
- Total borrowing is projected to be $1.168 billion.
- A $100 million voted contingency, which can provide funds to departments during the fiscal year for timely response to emergencies and unforeseen events.
The government’s fiscal situation is outlined in the 2026 Fiscal Outlook, included as part of this budget. The Fiscal Outlook also lays out plans for government capital projects over the next three years. Budget 2026 also includes an Economic Outlook which forecasts modest GDP growth for the near future.
Yukoners gave us a mandate to manage the Yukon’s finances responsibly. While this budget keeps us within our $1.2 billion federally imposed debt cap, it is not what I envisioned. Nor is it what Yukoners deserve. This budget is a result of years of spending that outpaced revenues. As a result, previous spending was funded by debt. Despite the fiscal challenge we face as a territory, we have not had to cut jobs, as has been seen in other Canadian jurisdictions. In fact, we have seen spending increases in health, education, public safety and energy affordability. This budget is a response to the financial situation we have inherited. It also marks our first step towards getting spending under control and back on the road to balance.
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The territorial borrowing limit was a key constraint in the development of Budget 2026.
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The Government of Yukon tabled an Interim Supply Bill that provides $556 million to departments in April and May as spending authority for the entire fiscal year is debated in the Yukon Legislative Assembly. Of that amount, $470 million is for operation and maintenance expenditures and $86 million is for capital spending.
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Amendments to the Financial Administration Act required for a voted contingency were also tabled in the Yukon Legislative Assembly.
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Between fiscal years 2020–21 and 2025–26, net expenditures increased by 60 per cent while revenue increased by only 38 per cent.
Tim Kucharuk
Press secretary, Cabinet Communications
867-335-2419
[email protected]
Linnea Blum
Communications, Finance
867-332-2625
[email protected]