Iqaluit (Mar 29/04) - Nunavut politicians are hailing the 2004 federal budget as a step in the right direction.

The federal government has announced that it will add an additional $150 million increase in transfer payments for the three territories over the next five years.

The government released the 2004 budget on March 23.

While Nunavut would like to see more money from the feds, Leona Aglukkaq, Minister of Finance, said this is a good start.

"I think this was a positive budget for Nunavut," she said.

President of Nunavut Tunngavik Inc. Paul Kaludjak agreed that the budget is a good note for the territory, but it also could be better.

"At least we are being heard somewhat by the government," he said. "Because of the high costs of living in Nunavut, money is always an issue for us."

Both Kaludjak and Aglukkaq said one of most important aspects of the budget is the government has allocated $90 million over the next five years to develop a Northern Strategy.

"It's not a lot of money, but at least it's a start," Aglukkaq said.

"Having an economic development strategy is crucial," added Kaludjak.

"We need economic stimulation."

Aglukkaq said the federal government is starting to recognize the untapped resources in Nunavut.

She said by having a development strategy, it starts the process to encourage more private industry.

Infrastructure money needed

The territorial government would have liked to see money allocated for infrastructure development and housing.

Kaludjak said infrastructure is an ongoing problem in Nunavut that needs to be addressed.

He said if Nunavut wants to grow, it needs to expand its infrastructure.

"NTI is trying to push for funding to have road access in the Kitikmeot and Kivalliq regions," he said.

A problem the territory keeps running into, Kaludjak said, is not enough money to do that.

"We're seeing that the government is slowly looking at our needs," he said.

"We still have a long way to go."