The Yukon government could be staring down a hefty deficit in the upcoming fiscal year, despite its second consecutive billion-dollar-plus budget.

This afternoon in the legislative assembly, Premier and Finance Minister Dennis Fentie tabled $1.075 billion worth of territorial spending for 2010/2011.

The new budget's surplus estimate is considerably less rosy than last year's prediction of nearly $20 million.

When all government expenditures were tallied for 2009/2010, that multimillion-dollar overflow turned into a $23-million deficit.

Based on spending estimates by departments this time around, most of which show marginal increases – except in the case of Health and Social Services' budget, which is $18 million less than last year's real costs – the government's modest $2.9-million surplus projection may turn out to be wishful thinking.

The $230 million earmarked for health spending this year is barely $1 million more than 2009/2010's estimate, but nearly $20 million short of the true cost of delivering services that fiscal year.

Department of Finance officials blamed Territorial Health Access Funding (renewed by Ottawa in the Mar. 3 federal budget), not included in this fiscal year's figures, but the trend applies to many departments.

The Department of Community Services' 2010/2011 estimate is $65.8 million, nearly$1 million less than what the department spent last year.

The Department of Economic Development is slated to receive nearly $3 million less ($13.9 million) than what it actually cost to run the department in 2009/2010.

A similar scenario faces the Department of Environment, budgeted to receive $27 million, more than $1 million less than the department billed the government last year.

The Department of Education gets a $2-million boost, with a budget of $129.5 million for this year, compared to $127.5 in actual expenditures in 2009/2010.

The only government department to receive a significant boost – thanks to a $39-million federal investment to clean up abandoned mine sites – was Energy, Mines and Resources, which sees its budget increased $18 million to $73.684 million.

The good news is Yukoners will face no new tax increases nor health care premiums, the latter of which a spectre that opposition leaders warned could become reality. The NDP government eliminated health care premiums in 1985.

The current government is also boasting an accumulated year-end surplus of $527 million, which includes capital assets and cash in the bank.

Finance officials estimate net financial resources of $40.3 million by the end of this fiscal year.

See more budget coverage, opposition reaction in Friday's Star.