When the 2006/2007 territorial budget is tabled next week, it will be the Yukon's largest ever.

Premier Dennis Fentie announced at a Whitehorse Chamber of Commerce luncheon Tuesday this year's budget will top the $790-million mark.

Of the money put in this year's budget, $190 million will be capital investment to continue the economic stimulus in the territory, said Fentie.

'Once again, it will be a budget that leaves Yukon finances in healthy shape. In other words, money will remain in the bank,' he said.

The budget's investments and spending will surpass the $784 million put in the April 1, 2005 to March 31, 2006 budget. An additional $40.7 million was added to the supplementary budget last October.

The 2004/2005 budget totalled $705 million. But prior to the 2003/2004 fiscal year, the territory's budget hadn't hit the $600-million mark.

Last year, more than $540 million of the territory's budget was made up of federal transfers.

The extra cash in the 2005/2006 budget came from a $60-million boost in the territorial formula financing grant the Yukon is given by Ottawa each year.

The hike is due to the changes in the formula financing the federal and territorial governments agreed to in 2004. The change brought the grant to $494.1 million for 2005-06.

Fentie cited changes in the territory's economy since his party came to power in late 2002 as being to the Yukon Party's credit and seen in its 'four successive record-sized budgets.'

Property values are rising in the Yukon, the population is growing, relationships are being established with first nations and other Canadian jurisdictions and a balance has been achieved between the economy and the environment, said Fentie.

'We injected deliberate short and medium term stimulus to our ailing economy,' he said. 'I believe the evidence is apparent in our growing economy and population in today's Yukon.'

Liberal Leader Arthur Mitchell said he is willing to give credit where credit is due to the government's leader. The economy, however, is not one of those areas, he said.

'I would suggest that simply taking funds from Ottawa and saying that your spending them here is stimulus is not in and of itself an economic development plan,' said Mitchell.

The Yukon is benefiting from national and international trends, said Mitchell, drawing reference to the housing market and the boom in mineral prices.

A lot of the optimism currently being generated in the Yukon's economy is because of the record-high mineral prices that are being driven by China and other Pacific Rim countries, he said.

'I don't think the Yukon can take credit for it. But it's important that we be ready to benefit from it,' said Mitchell. '(Fentie) seems to be taking credit for almost everything.'

Fentie said the Yukon, while previously under the leadership of former Liberal premier Pat Duncan, was a territory of turmoil.

'Think back to the turmoil of yesterday's Yukon. The high unemployment, declining population, the falling property values, the lack of political leadership that took us there. Then take a look around at today's Yukon. It is quite a different place.'

The quality of life in today's Yukon is the result of a deliberate and planned vision of the Yukon Party government, said Fentie.

'We've had three successive record budgets,' said Mitchell. 'But we'll have to worry a little bit about sustaining these levels.'

NDP Leader Todd Hardy said Fentie appears to be introducing a 'going for broke budget.'

It's an election year and the Yukon Party is trying to buy votes, said Hardy.

Fentie must call an election by November.

'If (Fentie) can buy votes with this budget and the Yukon Party is elected, they can lapse, cancel and delay a lot of the projects they are announcing,' said Hardy.

If the party isn't re-elected, it's going to be the next government that will have to deal with all of the spending promises that are not sustainable, he added.

If the Yukon Party were to actually fulfill all its promises and the money was actually spent, the territory would be in a deficit position, said Hardy.

'(Fentie) is making promises that he knows he may not be able to fulfill.'

Hardy further added he is concerned that the Yukon Party has appeared to simply plan from one year to the next rather than looking at the long-term.

Fentie disagreed, insisting there is a planned vision that is taking the Yukon in a better direction.

'A direction based on fundamental principles of strong fiscal management, co-operative government, a balance between the economy and the environment and the strengthening of our social fabric,' he said.

Yukoners can expect to see 'significant funding' going towards the Substance Abuse Action Plan in the budget, he added.

The Safer Communities and Neighbourhoods legislation will also be tabled during the spring sitting, said Fentie.

The premier is trying to make the territorial election a budget campaign, said Hardy.

'We're in a campaign election year. The campaign is on and the election could be called as early as next week,' agreed Mitchell.

Fentie told the luncheon's attendees Yukoners are sick of the political instability of one-term governments.

'One government returns the territory to health and prosperity only to have the next spend its time reversing those trends,' he said.

'Yukon is at a crossroads. Election time is before us. I say to you, ladies and gentlemen, all things considered, this is not a time for a change of direction. There is still a great deal of work to be done and in the coming year I have every faith that Yukoners will agree.'

The legislature will begin its spring sitting on March 30.