YELLOWKNIFE - In what has become an annual theme of territorial budget announcements, Finance Minister Floyd Roland rapped federal government knuckles for keeping, "(The territories) firmly tied to their purse strings."

"While the federal government reaps the benefits of resource developments in our territory, we must make the necessary investments to build and sustain our economy, protect our environment and prepare our people, without many of the tools required to do so effectively," said Roland who called it a "forced growth" budget that doesn't come with any "bells and whistles."

While the general feeling among MLAs is positive the federal government will implement recommendations from a 2006 Expert Panel Report, which would mean more revenue for the territories, the finance minister referred projected 2007/08 spending as "stay the course."

"It's conservative, based on what we know we have in the bank, not what we think we'll have," Roland told reporters in a pre-budget press conference.

Revenue, including federal grants and transfer payments, is $1.231 billion, an increase of 4.3 per cent over the 2006/2007 budget. Overall spending has increased 8.3 per cent, to $1.15 billion.

Premier Joe Handley called it a "well-balanced" budget, noting the increased spending on education and housing as sticking with his government's priorities.

According to the budget, Education, Culture and Employment accounts for the biggest single chunk of spending, rising to $286 million in 2007-2008. Health comes in second at $277 million.

Like his finance minister, Handley spoke of the need for Ottawa to make good on its commitment to give the NWT a fair share of its resource revenues.

"You can't keep milking the territories without putting something back in," he said. "Resource revenue sharing is critical."

Yellowknife Mayor Gord Van Tighem viewed the budget with cautious optimism, noting the government's commitment to the "New Deal"; a strategy designed to give municipal governments more cash.

"The important thing is the detail that will follow," he said, adding he's waiting to see what share Yellowknife would get of the $22.5 million for local infrastructure.

Somewhat more pleased than Van Tighem was social advocate Arlene Hache, executive director for the Centre for Northern Families.

"Floyd Roland should be proud of the job he did," she said. "Rather than past budgets I've seen heavily weighed on economic development side, this addressed critical areas like homelessness and education."