Yellowknife (Oct 25/04) - The territorial government will surpass $1 billion in operational expenditures next year, if not sooner, says comptroller general Lew Voytilla.

The second supplementary appropriation bill this year is currently before the legislative assembly, requesting an additional $11,000,000 in operational expenditures for the 2004/2005 budget.

That figure will raise total operational expenditures to $975,711,528, up $25 million from what was originally estimated when the budget was introduced last spring.

Finance Minister Floyd Roland warned MLAs the government must "tighten its belt" or risk going into serious debt.

However, despite a number of austerity measures introduced by the government, the territory continues to spend its way towards levels unheard of since pre-division days.

"Undoubtedly, with inflation, wage increases and everything else, we'll spend more than $975 million next year, I can guarantee you," said Voytilla, the GNWT's No.1 bean counter.

A third supplementary bill will be presented to the assembly in February and push the 2004/2005 fiscal year even higher.

In reality, the territorial government is already spending more than $1 billion a year but capital investments -- building schools, offices, etc -- are not included in operational expenditures.

Instead, capital investments are written off over a number of years. Including capital investments, the GNWT will so far spend $1,091,569,528 over the fiscal year.

"You (can) say our cash outlay is over a $1 billion, but our expenses aren't that high," Voytilla explained.

Premier Joe Handley said there just doesn't seem to be any way to keep expenses down, despite their best efforts. Forced growth -- through wage increases and inflation -- at a rate of 4-5 per cent, infrastructure development and ballooning gas prices are taking an enormous toll and he believes the territory would already be spending over $1 billion in operations had they not taken steps this year to limit the flow.

Range Lake MLA Sandy Lee said there seems to be a consistent pattern where every time new money comes in, the territorial government feels compelled to spend it.

"Every time we get some extra money from the federal government it's already spent," said Lee.

Meanwhile, balanced budget measures fall by the wayside.

"Its a spend, spend, spend sort of operation," she concluded.