Iqaluit (Oct 27/03) - With increases in capital expenditures this year the Government of Nunavut is predicting they will be $50 million in the red.

Minister of Finance Kelvin Ng, presented the new budget estimates in the Legislative Assembly, Oct. 22.

The government originally estimated that it would have a deficit of about $12 million dollars, but that has risen because of extra capital projects.

Capital spending is now projected to be $179.6 million, up from the $143.1 million projected earlier this year.

"We've had to cover costs for new fire halls in Clyde River and Repulse Bay, and a new Joamie school.," said Ng.

"Those and other costs have affected the budget."

Ng added the government isn't in too bad shape because it managed to save some money for a rainy day.

"Over the years we've accumulated a surplus," he said. "That will cover the deficit. We always like to put some away for situations like these."

"Next year we will be starting at zero," Ng added.

During this session of the Legislature government is also reviewing the capital budget for 2004 and 2005.

The budget is estimated at $107 million.

The top four departments that will get the largest chunk of the money in the new year are: Health and Social Services with a budget of $28.6 million, Education with a $26.6 million budget, Community Government and Transportation has a budget of $19.2 million and the Nunavut Housing Corporation has a budget of $15.9 million.

"We've always focused on maintaining our social programs and infrastructure," Ng said.

Public Works and Services will receive $7.7 million, Justice will receive $7.2 million, Sustainable Development will receive $2 million, Culture, Language, Elders and Youth will receive $600,000 and Human Resources will receive $100,000.