Yellowknife (Feb 02/04) - NWT Finance Minister Floyd Roland said the federal government's freeze on finances has added considerable uncertainty to the budget planning process.

"We still do not know what our formula financing arrangements for 2004-2005 and beyond will look like," said Roland during a budget progress update recently.

"The previous prime minister made a commitment last February to find solutions to our long-term funding needs. While we are confident that this commitment will be met, the issue is still unresolved and presents a significant source of uncertainty in our planning," he said.

Premier Joe Handley has said the government of the Northwest Territories needs to take a hard look at spending and revenue options.

"How much money we have to spend, how much we are prepared to raise in new revenues and how much debt we are prepared to take on, all set limits on activities and initiatives," Roland said.

Roland will deliver the budget when the legislative assembly meets in March.

"Given the relatively short time frame, we are limited in the measures we can implement for 2004-05. This budget, therefore, will be a stepping-stone towards achieving our medium and longer-term goals," he said.