The N.W.T. Finance Minister unveiled a budget of restraint this afternoon in the legislative assembly with the government trying to spend less than it had to spend last year.

Finance Minister Michael Miltenberger wore a $300 pair of new moccasins and a forest fire-themed vest today to announce the 2015-1016 budget. (Elizabeth McMillan/CBC)

The 2015-2016 budget projects revenues are slightly down to $1.83 billion with expenditures projected at $1.68 billion.

"We have been spending everything that we receive," Finance Minister Michael Miltenberger said in his budget address.

"We are approaching the edge of a cliff and our challenge is to ensure that we do not go over."

Here are some highlights:

$1 million to support communities outside of Yellowknife to host the 2018 Arctic Winter Games

$1.1 million for specialized courts, such as staff to help divert cases out of the criminal court system

$646,000 to help people on income support who are capable of working to find jobs

$1.2 million for more early childhood education work at the community level

$1 million for midwifery program in the Beaufort Delta

$618,000 for direct care supports in Aven's Manor, Elders Care Home in Fort Simpson, Northern Lights Special Care home in Fort Smith

$1.5 million for more commercial fishing industry support, to fund a new fish processing facility in Hay River and upgrade existing boats

$1 million for a new Liabilities and Financial Assurances Division to manage financial securities for resource development

$694,000 for a new Western Arctic Centre for Geomatics in Inuvik, a three person office

$1.4 million for energy conservation, for projects such as converting street lights to LED in some communities

75 additional housing spaces for income support recipients: 10 in Inuvik, 10 in Hay River and 55 in Yellowknife.

The budget includes $24.4 million in new or re-profiled money, which means money moved around within or between departments.

There are no tax increases and the territory plans to spend $34.6 million more than it budgeted last year. This year the government is projecting a $146 million operating surplus.

Another issue is the government is only permitted to borrow another $70 million before it reaches its debt limit. This increases the urgency to keep expenditures in check and receive an increase from the federal government to more than double the borrowing capacity.

The record 2014 fire season and a subsidy to the Power Corporation to reduce electricity rates dipped into the anticipated $200 million surplus. It was cut by about half to $109 million.

Miltenberger says low water levels, drought and the wildfire season are unpredictable and could add unforeseen expenses quickly.

"We're very conscious of it as it's unfolding and hoping mother nature is on our side," he said.

With the help of the surplus, the government hopes to increase the buffer to $86 million.

Population, revenues stagnant

Adding to the grim economic situation, the population is stagnant. It's the same as it was in 2004. The economy is still smaller than it was in 2007, so the N.W.T. is still trying to catch up after the recession. Last year economic activity was down and some mines are past their peak.

The economy is expected to improve by 3.7 per cent this year, but the revenues remain almost stagnant. The payoff of projects, such as construction on the Inuvik to Tuktoyaktuk Highway and the Gahcho Kue diamond mine, aren't expected to come until later.

Over the next five years, revenues are only expected to grow by 0.4 per cent, about 0.1 per cent a year.

"I don't consider them bleak at all," Miltenberger said of the lower-than-expected revenues.

"I think they're challenging. Post-devolution I think we have a chance to build the territory."

Even though this budget focuses on operations, Miltenberger says investments will help the economy in the long term. He says putting money into programs to promote wellness will save money in the long term, by keeping families together and keeping people out of jail.

He also says the territory remains optimistic about its goal to increase the population by 2,000 people.

Miltenberger says cabinet ministers should try to meet with students from the territory whenever the ministers are travelling to convince them to return home to work.

Another strategy is giving the recruiters the option of giving people conditional job offers pending reference checks at career fairs.

The bureaucracy is growing slightly, with 73 more territorial government positions than projected in last year's budget. Twenty-five of those jobs are in Yellowknife, 48 are in the communities.

He says the territory is also working with the federal government to improve the nominee program to fast-track the immigration process.

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