A new report from the CD Howe Institute, a conservative economic think-tank, ranks the Yukon last among federal, provincial and territorial jurisdictions for meeting budgetary revenue and spending projections over the past 10 years.

But Premier and Finance Minister Dennis Fentie is blaming the government's accounting practices for the Yukon's poor showing in a study that examined 10 years' worth of budgets from federal, provincial and territorial governments.

Deputy Finance minister David Hrycan said the territory's Crown corporations, including the hospital corporation and Yukon College, are not included in annual main spending estimates presented each spring, but show up in the year-end statements.

"If we would've included them, we would've gotten a different mark (in CD Howe's report), end of story,” Hrycan told the Star. "If you were to compare budgets, including the corporations, we're very close to the plans. All CD Howe is saying, ‘Why don't you put it in the main estimates?'”

Colin Busby, a policy analyst for CD Howe and co-author of the institute's latest report, said this method of reporting the Yukon government's finances makes it hard to figure out what's happening.

"You can't actually tell what's going on. Clearly, in my opinion, that's a real issue of obfuscation, and it can be quite troubling,” Busby told a local radio station last week when questioned on Yukon's rating.

"Changes should be made so the government can explain why it's spending more than it's taking in.”

With a record $1-billion budget in 2009/2010, Fentie's government projected a $20-million surplus, but wound up posting a $23-million deficit.

The premier said the swine flu crisis that mobilized Department of Health and Social Services staff for a territory-wide vaccination program last fall added to the spending overrun; however, the territory could be short on cash to manage a repeat during the coming flu season.

As well, funds from the government's emergency fire fund have dwindled to less than $200,000, providing the government $6 million less than it had in the previous year to combat forest fires.

For the 2010/2011 fiscal year, the government has $1.075 billion at its disposal (some $70 million more than last year), but projects a meagre $2.9-million surplus.

Already, the new collective agreement between the government and the Yukon Employees' Union, in which government employees would get a two-per-cent wage increase for 2010 (6.5 per cent over three years) if they ratify it, has cancelled the surplus, placing government spending in the red by more than $5 million.

With the fire season essentially here and the flu season around the corner, the government is facing another deficit; this one even bigger than last year.

Questioned on the CD Howe report at a Friday afternoon press conference following a meeting between the three northern premiers, Fentie dismissed the findings.

"We know statistically, and factually, that there's only two jurisdictions in this country that are not in a net debt position – that's Alberta and the Yukon,” Fentie responded. "I'm sure the CD Howe Institute might have reflected on that too – at least, I hope they did.”

Net fiscal position of the country's jurisdictions was not part of the CD Howe study, but in terms of meeting projected revenues and spending, Alberta ranked worst among the provinces, surpassing just Nunavut and the Yukon.

When Nunavut Premier Eva Aariak responded to a conference-call question from a reporter based in Iqaluit about the territory's $40-million public housing shortfall, Fentie could not resist wading in.

"CD Howe must have missed that one,” he said.