The Liberal government unveiled its first federal budget Tuesday, announcing “big, bold transformative” investments in families, infrastructure and indigenous communities.

Yukoners can look forward to an increase in the Northern Residents Deduction, extended EI benefit periods and investments in northern industries, tourism, public transit, affordable housing, and Arctic research.

But with great spending comes a greater-than-promised deficit.

The federal government will spend $29.4 billion more than it will make in revenue in the upcoming year. The Liberals campaigned on a $10-billion deficit in 2015.

The idea is that big spending on parents, students, veterans, housing and transit will jump-start a Canadian economy that has been slow to grow after periods of recession and a collapse in the price of oil.

“A huge part of the deficit is just a loss of revenues to Canada because of that dramatic fall in oil prices,” Yukon MP Larry Bagnell told the Star from Ottawa late Tuesday afternoon.

“With all these people going back to work and people and business paying taxes, our plan at the moment is that’s what’s going to be the biggest contributor to paying down the deficit.”

What’s missing from the budget – a promise the Liberals campaigned upon – was an investment in home care services.

“(Home care) is part of the ongoing discussions with the provinces and territories, so is targeted for a future budget,” Bagnell said in an email today.

So what can Yukoners expect out of the 2016-17 budget?

Northern Residents Deduction

Prime Minister Justin Trudeau made big promises for the North on the campaign trail, including raising the Northern Residents Deduction, a tax benefit available to northern residents, by 33 per cent and indexing it to inflation.

The proposed budget fulfills this promise: territorial residents will be eligible to claim $22 per day with a maximum yearly deduction of $8,000 per year. The current annual deduction is $6,022.

“The three northern MPs had to lobby really hard for that,” said Bagnell.

Northern Economic Development

In the hopes of fostering diverse and sustainable industries in the North, the budget proposes a $40-million investment over two years in the Canadian Northern Economic Development Agency (CanNor) for renewable energy, geosicences, fisheries, tourism and culture in the territories.

EI benefits

The new budget extends the employment insurance benefit period by five weeks. In Whitehorse, where unemployment has risen, long-tenured workers are eligible to an additional 20 weeks of benefits.

Affordable housing

This year’s budget emphasizes social spending as a way to grow the middle class. In that spirit, the budget earmarks $1.4 billion for affordable housing across the country.

“The government will double the amount that it provides to the Canada Mortgage and Housing Corporation’s Affordable Housing Initiative. Thousands of families will benefit from the measures contained in this budget to support affordable housing,” said Finance Minister Bill Morneau.

The Yukon will get $8 million for social housing.

High-speed Internet

A $500-million investment in broadband services will expand Internet access to remote and rural communities.

Transit

The Yukon will get $890,000 for public transit.

Green energy

Off-grid indigenous and northern communities will get $10.7 million over two years for renewable energy projects.

Arctic Environment

Indigenous and Northern Affairs Canada will get $19 million over five years to work with researchers and Inuit communities to gather traditional knowledge and new knowledge of the Arctic.

In the Yukon, research and traditional knowledge gathering will inform whether oil and gas development should go ahead in the Beaufort Sea.

Federal transfer to the Yukon

Every year, the federal government transfers an unconditional sum to each territory to fund hospitals, schools, social services and infrastructure at rates similar to the provinces.

The territory previously expected to receive a $901 million transfer in the 2016-17 budget.

Under the former Conservative government, however, changes were made to the way the formula is calculated, meaning the Yukon will get $6.5 million less than anticipated. The original proposed rollback had been $23 million.

The Yukon will get $895 million through Territorial Formual Financing, according to Bagnell, which is $21 million more than last year.

Reading from the budget, Bagnell said the government plans to “improve stability and predictability of federal territorial financing payments and address the impacts of the recent data revision.”

Adult education in the North

Ottawa will spend $3.9 million on extending the Northern Adult Basic Education Program, which funds adult education programs at northern colleges, through the 2016-17 period.

Nutrition North

Nutrition North is a federal program that subsidizes the high costs of shipping and stocking perishable foods – fruit, vegetables, dairy, meat and eggs – in remote northern communities.

Through the program, suppliers, retailers, restaurants and institutions such as daycares are given a subsidy to bring in food from the South. In turn, they’re expected to drop prices to make food more affordable for northern residents in isolated communities.

During the campaign, Trudeau promised to expand the Nutrition North program and make it more transparent and accountable to northerners.

Under the 2016 budget, $64.5 million will be spent over five years to operate the program and make it available to all isolated northern communities.

Nutrition North has come under fire in recent years from critics and residents who say retailers aren’t passing down the subsidy in full to consumers, and that some continue to sell healthy foods at too-high prices.

There was no mention in the federal budget about how the government would improve accountability in the program.

First Nations

First Nations communities across Canada will get a total of $4.22 billion over five years for much-needed improvements to drinking water, housing, education, child and family services.

In addition, $40 million over two years will be put toward the National Inquiry into Missing and Murdered Indigenous Women and Girls.

Other budget highlights include a one-year extension to the Mineral Exploration Tax Credit, better access to services for veterans in the North, and $83.3 million to fund free admission to national parks in 2017 in celebration of Canada’s 150th anniversary.

See related coverage in today’s Opinion, Nation and Trends sections.