IQALUIT - Finance minister Keith Peterson says Nunavut's new budget will "maintain the status quo" while increasing spending on education and child protection services.

Nunavut Finance Minister Keith Peterson talks to reporters about the 2010-11 budget on March 8. He said the $1.3 billion budget will be balanced, stable and steady. - Emily Ridlington/NNSL photo

Peterson tabled the $1.3 billion budget for the 2010-2011 fiscal year in the legislative assembly on March 8.

"It's a stable and steady budget," said Peterson.

While a deficit is not projected for 2010-11, the government will carry over a $44 million deficit from the current fiscal year which is up by $15 million from the projections. This is partly due to the $8 million the territory spent handling the H1N1 flu pandemic in 2009.

The government plans to increase spending by two per cent compared to last year.

New initiatives include $1.5 million to review the territory's child protection programs, services and legislation, $1 million more to invest in training Inuit educators, and $3 million more to develop school curriculum, improve school services, and provide every school with a counsellor.

The GN has also set aside $2 million to establish government liaison offices in 14 communities to provide information on government services.

"This is in response to a report card exercise and every community wanted more communication with the government," said deputy minister of Finance Peter Ma.

The government also plans to build a new website and set up a phone centre in 2012 so Nunavummiut can call to get information on services.

The budget's two biggest expenditures are education and health care, at $220 million and $265 million respectively.

Ma said $45 to $50 million of the health and social services department budget is solely devoted to medical travel.

Peterson told the legislative assembly that in order to "balance the books," $55 million has been set aside for emergencies and unexpected health care costs.

"I think we have to be prudent now and we have to manage our money more carefully," said Peterson.

The GN has a staffing shortage with almost 900 government positions vacant, totalling nearly one third of the positions available in the public service. Peterson said the government needs more accountants, engineers and computer specialists. He said the goal is to hire more Nunavummiut. He said this involves training people internally, encouraging the school system, working with the Nunavut Arctic College and encouraging people to apply for these jobs.

"We have to work closely with the education system, we are in this for the long haul and the change many not happen this year," he said.

Nunavut Tunngavik Inc.'s first vice-president James Eeetoolook said there was nothing really surprising that came out of the territorial budget.

"The budget addressed all areas of importance," he said.

Eetoolook said programs at Arctic College need to be upgraded in order for the vacant positions with the GN to be filled.

"The jobs need to be filled as soon as the territorial government can do so," he said.

Eetoolook said that NTI must be involved with review of territory's child protection programs, services and legislation as per Article 32 of the Nunavut Land Claims Agreement.

Currently 93 per cent of the territory's budget comes from the federal government.

"We just can't continue to rely on transfer payments," said Peterson.

The remainder of the revenue for the territory comes from own sourced revenues including personal income tax, property taxes, tobacco tax and other sources.

MLAs were told the government plans to increase its revenue by focusing on mining such as the gold mine production at Meadowbank. Peterson said the opening of the mine is very positive for the territory.