Andrew Raven
Northern News Services

Yellowknife (Nov 02/05) - One day after officials revealed a massive corporate tax miscalculation that will leave the Northwest Territories with a deficit this year, MLAs approved $60 million in extra spending.

Some regular members criticized the move and called on the government to rein-in its spending habits.

"We should try to get work done with the resources we have," said Kam Lake MLA Dave Ramsay.

Ramsay was a vocal critic of the spending bill - known in legislative circles as a supplementary appropriation - which passed through the assembly Wednesday. Ramsay said the government needs cut spending and limit positions in the public service, which has ballooned to 4,400 workers.

"We just keep growing and growing," said Ramsay, who caught heat from union leaders last year for similar comments.

One-third of the extra-spending approved Wednesday will come from Ottawa, which announced last year it would hand over $40 million to the Northwest Territories under the Northern Strategy program. The funds are destined for the communities, where municipal and aboriginal leaders will decide how to spend the windfall.

Another $16 million will cover salaries and benefits for unionized government workers, who signed a new contract earlier this year.

The remaining $24 million is earmarked for unforeseen expenditures.

The spending comes as revenues from corporate taxes, which are collected and administered by the federal government, fell $30 million below projections.

The miscue will transform a $26 million surplus into a $3 million deficit this year - the latest blow to beleaguered government coffers. Roland predicted a $48.6 million surplus when the budget was released in February.