Premier Darrell Pasloski delivered another record surplus budget for the territory this afternoon – $1.37 billion.

“Our government will stimulate the private sector economy by reducing taxes and putting more money in the pocket of Yukoners,” he said in his lengthy budget address to the legislative assembly on what is the first day of the spring session.

“And we will continue implementing, budget by budget, our government’s vision of prosperity for the territory by making Yukon the best place in Canada to live, work, play and raise a family.”

No tax increases are called for in the budget, which includes $43 million that was not spent in the 2014-15 fiscal budget and carried over to this budget.

In fact, on Tuesday, the government announced a cut in personal income tax rates for Yukoners that will result in annual savings of $5.5 million. (See separate story, p. 5.)

Included in the estimate for the current 2015-16 fiscal year, which began Wednesday, $1.05 billion is allotted for operation and maintenance and $313 million is allotted for capital projects. Both are records on their own.

More than $1 billion is coming from Ottawa in the form of the annual transfer payment totalling $874 million compared to $851 million last year, representing a 2.6 per cent increase.

There’s another $179 million in federal transfers and recoveries from Ottawa, raising the total federal contribution to $1.05 billion for this fiscal year.

The federal government, for instance, will be contributing $35 million under the annual Canada Health Transfer over and above the core funding.

The Yukon will be recovering $43 million for the ongoing management of the abandoned Faro mine and other abandoned mines which were historically licensed by Ottawa.

It’s estimated the territorial government will generate $127 million in revenue through its own taxes, plus another $43 million in fees and services, such as the anticipated profit of $8 million from liquor sales and $4.7 million from motor vehicle licences and registrations.

“We believe in managing finances in a way that ensures we have money when we need it most,” Pasloski told the legislature.

“Yukoners are tightening their belts this year, which is why we are making these investments and providing tax relief – that’s what our fiscal management over the past decade allows us to do.

“I want Yukoners to know that we are committed to continuing with reliable fiscal management.”

Last year’s initial budget estimate of $1.31 billion forecast a surplus of $72 million, though the surplus is now forecast at $49 million.

That leaves the territory with $194 million in net financial resources – or money in the bank – as of Wednesday.

The anticipated surplus for this budget has been estimated at $23.2 million.

As is typical, the lion’s share of operation and maintenance funding for this fiscal year, $327 million, will go to the Department of Health and Social Services.

The Department of Education is next in line with an estimated budget of $155 million.

With an allotment of $132 million for 2015-16, the Department of Highways and Public Works is third from the top in O & M funding, followed by Energy, Mines and Resources, with an estimated budget of $85 million.

This fiscal year’s O & M budget represents a slight increase of $47 million over last year’s original estimate of $1.02 billion, while the capital budget of $312.8 million is seven per cent larger than last year’s original estimate of $293. 4 million.

With funding identified for a number of health care projects such as $26 million for the new Whitehorse continuing care facility and $22 million for the Whitehorse General Hospital expansion, Health and Social Services is topping all departments in capital spending, with a total budget of $95 million.

Highways and Public Works – typically number one in capital funding – is second this time around with a total budget of $84 million, including $9.7 million for ongoing upgrades to the Campbell Highway.

Community Services is third on the list with an estimated capital budget of $54 million for the 2015-16 fiscal year while the Department of Education slides in at fourth with anticipated expenditures of $26 million, including $12.5 million for the F.H Collins Secondary School project. This capital budget also identifies $3 million anticipated for next year to complete the F.H. Collins project.

Topping all capital projects is $26 million for the new 300-bed continuing care facility proposed for Whistle Bend (with phase one – 150 beds - to be finished in 2016), $22 million for the expansion of the ER and MRI units at Whitehorse General Hospital and $16.4 million for the replacement of the Sarah Steele Building.

Under the operation and maintenance budget for 2015-16, estimates for the 10 largest budgets and how they compare to last year’s estimates are as follows:

• Health and Social Services – $327 million, up from last year’s $308 million;

• Education – $154.8 million, up from last year’s $153 million;

• Highways and Public Works – $132.4 million, up from last year’s $127 million;

• Energy, Mines and Resources – $85.3 million, up from last year’s $82 million;

• Community Services – $84.5 million, up from last year’s $79 million;

• Justice – $67 million, up from last year’s $63 million;

• Public Service Commission – $44 million, up from last year’s $42 million;

• Environment – $39 million, up from last year’s $34 million;

• Tourism and Culture – $26 million, up slightly from last year’s $25.7 million;

• Executive Council Office – $22.9 million, down from last year’s $24 million.

Under the capital works budget for 2015-16, estimates for the 10 the largest budgets and how they compare are as follows:

• Health and Social Services – $94.8 million, up from last year’s $30 million

• Highways and Public Works – $83 million, down from last year’s $111 million;

• Community Services – $54 million, up from last year’s $49 million;

• Yukon Housing Corp. – $27.8 million, down from last year’s $43 million;

• Education – $26 million, down from last year’s $37 million;

• Energy, Mines and Resources – $7.4 million, up from last year’s $6 million;

• Yukon Development Corp. - $6.3 million, up from last year’s $2 million;

• Justice – $5.2 million, up from last year’s $3.5 million;

• Tourism and Culture – $3 million, down slightly from last year’s $3.1 million; and

• Environment Yukon – $1.7 million, down from last year’s $4.6 million.

By Chuck Tobin and STEPHANIE WADDELL Star Reporters