Nunavut Finance Minister Keith Peterson has tabled a budget that aims to balance the territory's books.

Tabling the 2010-11 budget Monday in Iqaluit, Peterson said he's presented a "prudent" balanced budget in light of a $44-million deficit that's projected for this fiscal year.

The latest deficit figure is up $15 million from the government's previous projections, due in part to $8 million the government spent last year to combat the H1N1 influenza pandemic, Peterson said.

"The global recession may be ending, but the global economy is not yet growing with confidence. Everywhere governments face bulging deficits and rising debt," Peterson said in his budget address.

"To balance our books next year, we have set aside $55 million for contingencies and unexpected health-care costs. We have planned to buy as much as two-thirds of our fuel supply before prices rise."

2% spending increase

The budget's expenditures top $1.3 billion, with only a two per cent increase in spending. Some of the new spending proposals include:

• $3 million more for a bilingual education curriculum in English and the Inuit language, as well as funding to ensure all schools have school community counsellors.
• $2 million to implement government liaison officers, one for each community, to better connect Nunavummiut with territorial government programs and services.
• $1.5 million to review of Nunavut's child protection services and legislation over the next two years.
• $500,000 towards developing a poverty reduction strategy.

The Health Department will focus on illness prevention with the help of a $265-million budget in the 2010-11 fiscal year.

Must 'pay our own way': Peterson

In his budget address, Peterson mentioned the need to reduce Nunavut's reliance on federal government funding, as 93 per cent of the territory's revenue currently comes from Ottawa.

"We need to reduce our reliance on these transfers," he said.

"It will take years, but we must improve our ability to pay our own way. That means we must not only create jobs and wealth, but also equip Nunavummiut to perform those jobs."

Peterson said he is looking to the mining sector to create new jobs, while Nunavut officials continue to have talks about devolution, or the transfer of governmental powers from the federal to territorial government.

Peterson said the federal government has not yet seen evidence that Nunavut is prepared to handle the additional responsibilities that come with devolution.

The Nunavut government continues to struggle with recruiting and retaining its public servants, Peterson said, noting that 900 territorial government jobs are currently vacant.

Peterson says his goal with this budget is to connect the government's vision with the resources it has available.