SOMBA K'E/YELLOWKNIFE - Monday's federal budget, though largely unchanged from the one handed down by the Conservatives before last month's federal election, is receiving a mixed reaction from people in Yellowknife and across the North.

What's in the budget: $8 million for northern green energy projects $9 million over two years to expand adult basic education in the North $150 million supporting the completion of highway between Inuvik and Tuktoyaktuk One-time $1,000 hiring credit for small business $400 million funding for ecoENERGY Retrofit Program for 2011-2012 What's out: $2 billion long gun registry $4.3 billion per year from federal programs and services Source: Government of Canada

Tim Doyle, executive director of the Yellowknife Chamber of Commerce, who has watched with growing alarm as businesses have left the city's downtown core, said there are a few things in the budget that will help small businesses in Yellowknife.

"I like the hiring credit," said Doyle, of up to $1,000 one-time grant to small businesses.

"When employers have to pay for employment insurance, the Canadian Pension Plan, all these different things, it really puts a restraint on the cash flow. So a $1,000 break for hiring employees will be a nice little break for them."

He's also happy with the reduction of the corporate tax rate to 15 from 16.5 per cent, saying it will help small businesses make ends meet and will actually mean the federal government collects more money than if taxes stayed higher.

"If they leave the money in the hands of the businesses, the businesses tend to invest the money and get bigger. They actually pay more in dollar taxes because they are doing more business," Doyle explained.

NWT Finance Minister Michael Miltenberger said he does expect some programs and services cuts, but Northerners shouldn't be overly concerned.

"They've already agreed to put some areas off limits - the transfers to the provinces and territories, health and social services, equalization and formula financing. So they're going to be looking internally at their own programs ... what those are has yet to be determined."

Western Arctic MP Dennis Bevington, though, said he is concerned about how some of the $4.3 billion in expected cuts will affect the North.

"What we noticed was there was fairly large cuts to northern programs - almost $300 million in cuts," said Bevington. He pointed to $220 million in cuts to the Department of Indian Affairs and Northern Development and $17 million in cuts to community development funding with the Canadian Northern Economic Development Agency.

"We have put in an access to information request to Ottawa to find out exactly where these cuts will be," said Bevington.

He was happy, however, with the re-announcement of $150 million to help fund the completion of the Dempster Highway between Inuvik and Tuktoyaktuk - money that must be matched by the territorial government. He said having the highway will help with the Mackenzie Gas Project and will create jobs for Northerners.

Jean-Francois Des Lauriers, regional vice-president for the Public Service Alliance of Canada in the North, said he is worried about how budget cuts will impact Northerners.

"This is again a budget that is irresponsible and reckless in fiscal restraint," said Des Lauriers. He said it reminds him of the deficit slashing measures undertaken by the governing Liberals in the mid-1990s.

"Now we're embarking into another round of cuts," said Des Lauriers.

"When you say that $4 billion a year is not going to affect people - that is so outrageous. You don't cut $4 billion in programs and not have a deep effect on the quality and the delivery of these programs."

He said the NWT may be particularly hard hit by cuts to federal programs because of its high population of the young and elderly.

Nunavut MP and federal Health Minister Leona Aglukkaq said this isn't something people should be worrying about.

"What I can say first and foremost is what our prime minister has stated: we will not balance the books on the backs of the provinces and territories," said Aglukkaq.

"The transfers will continue. We will not reduce them - we will in fact increase the transfers to help in the North," said Aglukkaq. "Any government reviews how they do business on an ongoing basis and we will move forward in that."

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