Yellowknife (Feb 06/06) - Calling his budget "bold" and "decisive," Finance Minister Floyd Roland is gearing up for a seven per cent increase in spending over 2006/07.

Finance Minister Floyd Roland tries on his new budget shoes before making his annual address to the legislative assembly. The minister hopes a change of government in Ottawa will mean greater economic freedom for the NWT. - Mike W. Bryant/NNSL photo - BY THE NUMBERS: Total revenue: $1.1 billion / Last year - $1.08 billion Total operating expenditures: $1.06 billion / Last year - $1.07 billion Operating surplus: $37.7 million / Last year - $13.1 million Total capital investment expenditures: $118.6 million / Last year - $117.8 million Total debt: $223.3 million / Last year - $151.6 million Total government staff: 4,836 / Last year - 4,689 Spending by department (last year in brackets): Legislative assembly: $14.5 million ($14.5 million) Executive: $68 million ($67.2 million) Finance: $7.9 million ($7.1 million) Municipal and Community Affairs: $110 million ($131.9 million) Public Works and Services: $47.1 million ($45.5 million) Health and Social Services: $265.1 million ($259.7 million) Justice: $83.8 million ($81 million) NWT Housing Corporation: $36.8 million ($35.9 million) Education, Culture and Employment: $259.2 million ($255.2 million) Transportation: $82.9 million ($78.9 million) Industry, Tourism, and Investment: $37.9 million ($36.6 million) Environment and Natural Resources: $54.7 million ($57.3 million)

For the second straight year, the territorial government projects an operational surplus.

At $31 million, it's more than double last year's total. Revenue is up slightly to $1.1 billion from $1.08 billion in 2005.

The rosy forecast carries on to the economy, which the government expects to grow this year by 7.6 per cent. A significant chunk of the government's spending increase will go to 147 new jobs to bring the territorial government's total workforce up to 4,689.

But despite a balanced budget and a red hot economy, Roland repeated many of the governments misgivings towards Ottawa in recent years: the lack of a resource royalty agreement, inadequate federal formula funding, and a $300 million debt ceiling that has hamstrung the territorial government's ability to make larger investments in capital projects.

He hopes with a new Conservative government taking hold of the reigns of power in Ottawa today, all that will change.

His address to the legislative assembly made mention of Prime Minister-designate Stephen Harper and his government-in-waiting 11 times.

"We listened carefully on election night when Mr. Harper spoke directly to the territories and told us he sees the potential in the North and looks forward to helping us achieve our dreams," said Roland.

"We are ready and willing to work with the new prime minister and his government."

On the tax front, Roland's address promised no changes to the current plan other than a lowered corporate tax rate to 11.5 per cent from 14 per cent.

The decision to lower the rate was made in an effort to keep businesses from filing income taxes outside of the territory, such as in Alberta, which is also at 11.5 per cent.

It comes as a complete about face, however. Two years ago, in his first address as finance minister, Roland raised the corporate rate to 14 per cent from 12 per cent to offset financial penalties from Ottawa.

For program spending, Roland pledged an additional $17 million this year for education, $18 million for health, and $4 million to build homes in 14 of the NWT's smallest communities.

The government plans to spend $326,000 this year to increase senior's low income benefits to $160 a month from $135.

The territorial government also has to make a $290 million repayment to the federal government this year. The GNWT owed Ottawa the money after receiving an overpayment on corporate income taxes in 2002.

Roland's budget address received cautious approval from those who came to hear it.

"It would appear the Northwest Territories is very supportive of the change in government," said Todd Parsons, president of the Union of Northern Workers.

"Now it's time for Mr. Harper to step up to the plate as well."

Not all MLAs were pleased.

On Friday, Tu Nedhe MLA Bobby Villeneuve chided the government, which despite a large and growing civil service, is still struggling to deliver programs and replace aging infrastructure.

"Why do children in Colville (Lake) still have to use a honey bucket?" demanded Villeneuve. "Their answer was to put fur on the seat."

Sahtu MLA Norman Yakeleya said Roland isn't demanding enough from Ottawa.

"I don't think he was being bold enough," said Yakeleya.

"We need a clear, concrete date for when we're going to get resource revenue sharing."