Chris Puglia
Northern News Services

Iqaluit (Mar 17/03) - Iqaluit Centre MLA Hunter Tootoo says the writing is on the wall.

While calling this year's budget -- Unveiled March 11 -- "not bad," he has serious reservations about it.

"We've been able to rely on accumulated surpluses every year, it's all gone now," said Tootoo.

"If it wasn't for last year, we'd be looking at a $24-million deficit budget this year. It's an indication that the honeymoon is over."

This year's $843 million budget represents an 11 per cent increase in expenditures over last year.

Some of the more significant areas of new spending include $2.2 million for a mental health and addictions strategy as well as $1.4 million for law enforcement to set up RCMP detachments in Whale Cove and Chesterfield Inlet.

The Department of Education's budget increased by $7.4 million to $160 million.

The health and social service budget also increased significantly by $40 million, thanks in part to additional federal funding.

The new budget includes the largest capital program to date in Nunavut.

Finance Minister Kelvin Ng announced $143 million to address housing and facility needs in the territory.

The funds will go towards housing, schools, health facilities and community infrastructure projects.

Ng said there is need for additional assistance from the federal government.

"We have no accumulated reserves to invest ... we do not want to or have the option to accumulate significant debt levels," he said.

Tootoo isn't optimistic the government will be able to stay out of debt in coming years.