The Yukon's MP will not be supporting Monday's proposed federal budget when it comes to a vote in the House of Commons.

The vote is expected to pass with the support of the Bloc Quebecois joining the minority Conservative government.

However, the territory's Liberal MP, Larry Bagnell, said his party won't support the $233.4-billion budget which includes changes to the territorial financing formula.

Those changes will see the territory receive $540 million from Ottawa in the new fiscal year, which will begin April 1. Under the old formula, the territory would have received $3 million less, Bagnell pointed out.

While that is among some of good things the Yukon MP said he saw in the budget, he also pointed to some disappointments in the federal spending.

'The biggest losers (from this budget) are the aboriginal people,' he said.

In the largest-spending budget in Canadian history, he said, there's little set aside for aboriginal programs.

There will be funding for aboriginal justice programs. (See separate story, p. 5.)

There are also housing initiatives, but Bagnell argued the budget doesn't address the broad range of issues impacting aboriginal people across Canada.

It doesn't deal with education, health care and other matters that the Kelowna Accord under Paul Martin's former government did, he said.

Also gone are language programs and other cultural initiatives, Bagnell said.

Phil Fontaine, the Assembly of First Nations' national chief, also spoke out against the budget.

'(Monday's) budget was supposed to contain something for all Canadians, but today, first nations are beyond disappointment. We don't see any reason to believe that the government cares about the shameful conditions of first nations,' he said in a statement.

Fontaine acknowledged it's encouraging to see the federal government renew and expand successful programs like the Aboriginal Justice Strategy, which helps fund a number of alternative justice programs in the territory, the Aboriginal Skills and Employment Partnership initiative and on-reserve housing.

However, Fontaine argued there is 'critical under-funding' in first nations child welfare, education, housing and infrastructure.

'No other Canadian citizen has had to endure a two-per-cent cap on funding that has now lasted for over a decade. Our population continues to grow and the poverty gap continues to widen,' he said in a statement.

The budget provides $39 billion over seven years to provinces without any comparable attention to first nations, Fontaine said.

The chief is calling on first nations leaders, especially women and youth, to study the budget and provide their reactions to Indian and Northern Affairs Minister Jim Prentice.

Andy Carvill, the Council of Yukon First Nations' grand chief, was set to address the media about the budget this afternoon.

In addition to the first nations issues in the budget, Bagnell argued, there are also issues for the North and other nation-wide concerns arising from the document.

'There's no emphasis on the North,' he said, adding that the Northern Strategy was not mentioned in the budget.

A lot of environmental programs have not been reinstated or have been reinstated with a smaller amount of money than there's been in the past, Bagnell said.

Numerous environmental groups have spoken out against the budget as well.

There's also very little for low income Canadians outside of a tax credit to help those on social assistance enter the work force.

Income tax reductions that were expected in the budget aren't there, Bagnell said.

Even though there are positive changes to income tax credits on children and spousal dependents, the MP argued, they're offset by the income tax rates.

'There's almost nothing for undergrad students,' he continued, pointing out the former Liberal government had proposed to cover half the tuition for undergrad students in their first and last school years.

The Conservative budget does propose more scholarships for postgraduate students of up to $17,500 per year for masters degrees or $3,500 for doctorate students.

'It's a lot better than nothing,' Bagnell said of the proposals.

The Yukon MP was not entirely critical of the budget.

Citing its positive elements, he pointed to the new formula financing arrangement with the territories, an increase in the expenses long-distance truck drivers can claim for meals on their tax forms, the base amounts for infrastructure funds, a boost in foreign aid, the extension of the mining exploration tax credit to 2008 and the tax credit for those who own more fuel-efficient vehicles.