NWT/NUNAVUT - The federal budget released last Thursday afternoon focused on measures to tighten the country's fiscal belt and chip away at the $56-billion deficit.

In his budget address to the House of Commons, federal Finance Minister Jim Flaherty announced a final sum of $19 million for the Economic Action Plan, along with a series of initiatives focused at creating jobs and growth through innovation.

"We take the same approach that Canadian families take in managing their household budgets," Flaherty said.

"We are spending what is necessary to meet an emergency. We are also looking beyond that emergency, to ensure we can keep paying off the mortgage and saving for our children's education. We are ensuring we will have the resources to sustain necessary spending on the priorities of Canadians. We are protecting our quality of life, and securing our long-term prospects.

"Doing so requires choices - balanced, sensible choices."

In the throne speech last Wednesday, Gov. Gen. Michaelle Jean said the government plans to freeze all departmental operating budgets and perform a review of how departments are spending their money, a telltale sign of potential spending cuts in future budgets.

"Canadians live within their means and expect their governments to do the same," Jean read from the floor of the Senate. "Spending designed for a rainy day should not become an all-weather practice."

The government, she read, "will aggressively review all departmental spending to ensure value for money and tangible results."

Federal departmental budgets will not be increased to fund the 1.5 per cent annual wage increase for public service employees. That means departments will be required to absorb those increases by cutting spending.

The budget also commits $45 million over two years for a revamped food mail program. Combined with existing funding, the program's annual budget will be $60 million.

Chuck Strahl, minister of Indian and Northern Affairs, said the Food Mail program is being redesigned to get more food and more nutritious food to people in Northern and remote communities.

He said he hopes the overhaul will happen relatively quickly.

"This additional money is going to be useful because it will help us get the job done and get the details of that redesign worked out," he said.

Strahl was noncommittal when asked if the redesign would be based on recommendations in last year's report by Graeme Dargo, who suggested major changes to the program.

"Mr. Dargo's report was one of the reports I received," Strahl said. "We did a pretty broad consultation at the community level, with the airlines, with the land claim groups. So we've got a lot of input."

Strahl said there will be significant changes, adding there is broad dissatisfaction with the program.

Leona Aglukkaq, MP for Nunavut and federal Health Minister, said the government is trying to make the program more efficient, cost effective and modern.

"It is a food mail program and there were things being shipped up North that were not even food," she said, adding that in the past Ski-Doo parts had been shipped as part of the program.

The budget also contained a provision to renew the Canada Health Transfer and Territorial Formula Financing for two more years - which totals $60 million.

The budget stated the goal of the program is to reduce the amount the territories spend on medical travel and health services in other jurisdictions. Aglukkaq said the money will be used to train nurses, mental health workers, X-ray technicians and other health professionals.

"The intent is to deal with the turnovers (in staff)," she said.

In a press release, Nunavut Tunngavik vice-president of finance Raymond Ningeocheak said he was disappointed in the lack of new spending to deal with major social problems in Nunavut.

"It is surprising and disappointing that we do not see any new money to address the housing crisis in Nunavut, or to provide further help with health and education issues," he stated in the release.

The budget earmarked $199 million over two years to funding settlements under the Residential Schools Settlement Agreement but did not save the Aboriginal Healing Foundation, whose mandate expires this month.

"The closing down of the Aboriginal Healing Foundation is troubling," stated Ningeocheak. "Former students need those healing services."

The budget also provided $18 million for pre-construction design of the High Arctic Research Station.

Ottawa will announce this year where the station will be built, Strahl said.

"Of course, this is going to be a big, big project."