The Yukon government tabled a nearly $900-million budget for 2008/2009 this afternoon, expecting to spend nearly $697 million in the 2008/2009 fiscal year to operate the territory, along with $120 million in capital expenses.

Premier Dennis Fentie delivered his 2008 budget speech shortly after the legislature opened for its spring sitting.

The government will recover $61 million of the $697 million, the new budget predicts.

"This budget, like its predecessor, is enabling our government to implement our election commitments to Yukoners," Fentie, also the Finance minister, said from his 36-page budget speech.

"There is an old adage that 'actions speak louder than words'. The 2008-2009 budget is giving action to our words."

Among the operation expenses, by department, are:

• The legislative assembly will see an increase of five per cent this year from $4.8 million to $5 million.

• The elections office is expected to have the biggest decrease in operations, with a 17 per cent drop from $435,000 to $360,000

• The territory will spend $504,000 on the Office of the Ombudsman in 2008-09, compared to $544,000 this year.

• Operations of the Executive Council Office will increase 10 per cent, going up from almost $22 million to $24 million.

• There will be little change for Community Services, with $59.3 million from $59.6 million.

• Economic Development will remain about the same at $6.7 million.

• The government will spend more on Education, with spending going from $113 million to $113.7 million.

• Thirty-six million dollars will go to toward Energy, Mines and Resources compared to $38 million this year.

• Spending in Environment will rise from $23.6 million to $24.4 million.

• Finance spending will also be up a bit from $6.4 million to $6.7 million.

• Health and Social Services operations spending will be $209 million compared to $205 million in this fiscal year.

• Highways and Public Works will spend $99 million, compared to $96 million in the current year.

• Justice will spend about the same on operations at $44 million.

• The Public Service Commission will spend $34.7 million, compared to $33.8 million in the current fiscal year.

• Tourism and Culture will see less spending at $16 million, compared to $17 million in the current fiscal year.

• The Women's Directorate will see a nine per cent decrease in operations at $1.1 million, compared to $1.2 million in the current year.

• The Yukon Housing Corp. will be up three per cent in spending at $13.9 million, compared to $13.5 million.

It's expected there will be a $341,000 surplus at the end of the year.

While the government plans to spend $899.7 million, it will only have close to $874 million coming in in revenues, with $97.9 million from taxes, $92 million in recoveries and $632 million in transfers from the federal government.

The additional funds will come from the territory's surplus.

Among those revenues, the government will be taking in more in tobacco tax, if amendments proposed go ahead.

The government tabled amendments to the tobacco tax, which would see the tax increase from 13.2 cents per cigarette to 21 cents per cigarette, and from 4.68 cents per gram to 21 cents per gram on loose tobacco.

"The negative impacts tobacco smoke have on human health are well known," Fentie said in a statement.

"We're the only jurisdiction in Canada showing increased smoking rates and we want that to change."

The territory has the third-highest rate of smoking in the country. It's behind only the other two territories, with 30.4 per cent of Yukoners over the age of 12 being smokers, compared to a national average of 21.8 per cent.

The changes will see the territory become tied as the highest-taxed regions for cigarettes with the other two territories, while it would be the second-highest taxed jurisdiction for loose tobacco behind Newfoundland.

The $36.5 million the government put into asset-backed commercial paper investments continues to be counted as an asset for the territory.

The troubled funds are currently under court protection as a restructuring plan is developed and voted on.

A vote by investors on the restructuring plan is set for April, with results expected in May.