Iqaluit (Feb 27/06) - With a stack of documents three inches thick, Finance Minister David Simailak let Nunavummiut know where their money was going.

On Feb. 22, Simailak delivered the budget to the legislative assembly floor.

WHERE IT GOES The following is a breakdown of anticipated government expenses, by department, for 2006-07, and how much it spent in 2005-06 Legislative Assembly 2006/07 - $13.8 million 2005/06 - $13.3 million Executive and Intergovernmental Affairs 2006/07 - $11.3 million 2005/06 - $10.7 million Finance 2006/07 - $50.4 million 2005/06 - $49.2 million Human resources 2006/07 - $18 million 2005/06 - $17.9 million Justice 2006/07 - $56.4 million 2005/06 - $55 million Culture, Language, Elders and Youth 2006/07 - $16.2 million 2005/06 - $15.6 million Education 2006/07 - $184.3 million 2005/06 - $175.6 million Health and Social Services 2006/07 - $224.7 million 2005/06 - $215.6 million Environment 2006/07 - $16.6 million 2005/06 - $16.3 million Community and Government Services 2006/07 - $140.5 million 2005/06 - $137.8 million Economic Development and Transportation 2006/07 - $46.1 million 2005/06 - $44.8 million Nunavut Housing Corporation 2006/07 - $95.1 million 2005/06 - $92.5 million - Source: Summary of Operations and Maintenance Estimates, GN budget 2006/07

Government in Nunavut is a combination of Canadian and Inuit tradition, and the minister used both. Like his financial colleagues throughout the country, Simailak was wearing new shoes to deliver the budget. His choice of footwear was a pair of bright white new kamiiks from Baker Lake, made by his 74-year-old mother.

"If there is one word I could use to describe this year's budget, it is hope. Hope that significant economic growth will bring jobs and opportunities to Numavummiut," said Simailak in his address to the legislative assembly.

Hope comes with a price tag, though. This year the government of Nunavut projects a $7.6 million deficit. Last fiscal year, the territory had an operating surplus of $5.9 million.

The budget predicts revenue of $1.014 billion for 2006-07, and expenditures of $1.072 billion.

Of the revenues, $943.8 million is coming from federal transfers and $71 million comes from what the government calls "own source revenue", the pockets of Nunavummiut.

Those "own source revenues" include income taxes, fuel taxes, tobacco tax, payroll tax and rental recovery for staff housing.

Last year, $12.7 million was received from employees for staff housing. That figure is expected to jump to $14.3 million in 2006-07, due to increased rental charges for employees.

Every department received an increase to its budget, and there were no new taxes or tax increases.

The biggest bottom line change was the introduction of a fuel tax rebate. The rebate is for off-road travel, and along with benefitting large mining companies, the benefit has been extended to hunters, fishermen and anyone who works off-road.

"Nunavut has to be able to compete with other jurisdictions, otherwise there is a real risk that mining companies will take their investments elsewhere," said Simailak.

Other budget increases include $2.2 million more for income support programs, $19 million for conserving language, culture and heritage, and a $69.5 million investment over five years for municipal infrastructure.

The government has allocated funds for 10 communities to have one new duplex built in their hamlet.

Those communities are Pond Inlet, Kimmirut, Gjoa Haven, Taloyoak, Cape Dorset, Coral Harbour, Qikiqtarjuaq, Baker Lake and Rankin Inlet.

In Resolute and Kugaaruk, the final 20 buildings under the Infrastructure Canada Initiative will be built, and new staff housing will be built in Whale Cove and Chesterfield Inlet.

There was not much debate following the budget address. Of the 23 questions asked by MLAs that day, only one was related to the budget. Traditionally, members save their questions about the budget for the committee of the whole that discusses the budget.

Iqaluit MLA Hunter Tootoo asked whether the $2.3 million allotted to help bring the Baffin Regional Hospital up to national standards was a part of last year's spending or this year's budget.

Simailak wouldn't answer the question during the sitting, preferring to discuss the matter during the committee of the whole.