Riding the spoils from the current mining boom, increasing tax revenue and an eight per cent boost in federal transfer payments, Yukon Premier and Finance Minister Dennis Fentie presented the territory's 2011 spending blueprint projecting a healthy $38.5 million surplus.

A relatively strong economy promises inceases to corporate and personal income tax revenues without any tax rate increases.

During his budget address, Fentie said the $800 million spent by the mining industry in the Yukon for 2010 is comparable to the amount of money the territory will receive from Ottawa in 2011.

"Our critics fail to recognize that the territory's private sector is fast approaching parity with government in contributing to the growth of the Yukon economy,” said Fentie.

And for the second year in a row, government revenue tops $1 billion, while expenditures will exceed $1 billion for a third consecutive year, Fentie told the legislative assembly this afternoon.

Transfer payments, additional program funding from Ottawa and taxes add up to $1.105 billion in revenue and from that capital and operation and maintenance spending is estimated at $1.089 billion.

The anticipated surplus, Fentie said, would help restore the Yukon's net financial resources – often referred to as "cash in the bank” – to $43 million from the forecast of $18.2 million for this fiscal year, ending March 31, 2011.

Castigated by the Opposition Liberals and New Democrats for dipping into the territory's savings account, today Fentie hit back during his budget address.

"Our critics would not and do not support the Yukon government using its ‘savings account' to help create economic growth in the private sector ... our critics are wrong,” said Fentie. "What is the point of having a ‘savings account' if you can't use it in a time of need?”

From 2009 to 2011, Fentie's Yukon Party government made nearly $120 million in withdrawals, "to leverage the Government of Canada's stimulus spending programs to provide necessary and much-needed infrastructure.”

By department, Health and Social Services receives $32 million more than last year, however, its estimated $262.6 million in expenditures for 2011 is nearly $5 million less than the department will spend by the end of the 2010 fiscal year – $267.4 million. A year ago when Fentie tabled the 2010 budget, $230 million was

earmarked for Health and Social Services spending.

Included in the projected increases for health care spending in 2011 is the $4.3 million in additional cash for the Whitehorse General Hospital, which will be driven into operating the Watson Lake cottage hospital that the Yukon Hospital Corp. took under its wing in the spring of last year. An additional $2.8 million is earmarked

for social assistance and $3.2 million has been budgeted to operate the revived Thomson Centre 19-bed continuing care facility.

In his budget address, Fentie noted that his government's first budget in 2003 "was only $550 million”, but did not mention the Health and Social Services spending estimates for that year – $141.9 million.

As the Yukon Energy Corp. is threatening to seek another rate increase, residential consumers will be pleased to know that the interim electrical rebate has been extended for another year – to the end of March 2012 – at a cost of $3 million.