Yukon Premier Dennis Fentie, seen speaking to business leaders on Wednesday, said his budget aims to stimulate the private sector economy and help communities. (CBC)

Yukon Premier Dennis Fentie tabled an unprecedented $1-billion budget on Thursday, aimed at stimulating the territory's economy with record spending while maintaining the seventh surplus in a row.

Fentie, who is also the territory's finance minister, touted his $1.003-billion budget as the largest in the Yukon's history.

"As we face the challenges of the global economic downturn, our budget will make strategic investments in infrastructure and in people, maintaining a high level of stimulus in the territory," Fentie told the legislative assembly in his budget address Thursday afternoon.

The budget comprises $762.6 million in operations and maintenance spending and a $240.6-million capital budget. Overall, it breaks down to about $33,000 being spent per Yukoner.

Personal and corporate taxes will not go up, nor will taxes on alcohol and cigarettes.

Projects announced before budget day

Many of the government's spending plans had already been released before the budget came down on Thursday, including $21.6 million to be spent on building a new territorial jail, and $600,000 to help tourism officials market the Yukon to overseas tourists and convention organizers.

The budget ramps up transportation infrastructure spending by 13.8 per cent. A total of $56.7 million will be spent on improving the Campbell Highway, Front Street in Dawson City, and the Atlin Road, among other projects.

About $15.7 million will go to expanding the terminal building at the Erik Nielsen Whitehorse International Airport.

The budget promises $20 million to help the territory's health-care system, including efforts to buy new diagnostic equipment.

Other budget highlights in health care, social services and education include:

• $1.8 million to replace the Children's Receiving Home in Whitehorse.
• $1 million to build a new health centre in Dawson City.
• $400,000 for a plan to replace F.H. Collins Secondary School in Whitehorse.
• $719,000 to build a women's correctional facility in Whitehorse.
• $575,000 for the Yukon's community wellness court.
• $178,000 to help the office that enforces the Safer Communities and Neighbourhoods Act.

The budget pledges to put more money into income assistance programs:

• $2.08 million more for the Yukon's social assistance program.
• $176,000 more for the child-care subsidy program.
• $612,000 more for the Yukon seniors income supplement program.

The budget also includes $11 million to build 30 units of affordable family housing in Whitehorse.

Spending for water facilities, Faro mine cleanup

Fentie's budget also had spending for the environment, with a total $6.4 million set aside to improve water treatment facilities in three communities, and $40 million to kickstart a 15-year effort to clean up the defunct Faro mine.

Other environment-based highlights are:

• $5.5 million for a wastewater treatment system in Carmacks.
• $3 million for planning a sewage treatment solution in Dawson City.
• $450,000 to set up a territorial climate change secretariat.
• $250,000 to help community-based recycling facilities.
• $150,000 for a program that encourages Yukoners to buy energy-efficient products.

Green spending that was previously announced include $120 million to upgrade the hydroelectric dam in Mayo and $40 million to extend the Whitehorse-Aishihik-Faro hydro grid from Pelly Crossing to Stewart Crossing.

Another $4.25 million to go toward installing a third turbine at the Aishihik hydro dam.

More transfer payments

Despite the long list of spending increases, the budget forecasts a $19.3-million year-end surplus for the seventh consecutive year.

More federal transfer funds will make their way to the Yukon as a result of an increase in population recorded in the 2006 census.

Those transfer payments will jump about eight per cent, or $48 million, this year, according to the budget.

The budget anticipates $962 million in revenue, with about 70 per cent — $682 million — coming from federal transfer payments. The remaining money comes from territorial revenue and recoveries.

After various revenue streams and budgetary adjustments are factored in, however, the government projects the $19.3-million surplus at the end of the 2009-10 year.

The government also predicts the next three years will bring surplus budgets, Fentie said.