Northern leaders hope federal budget increases Northern Residents Tax Deduction

People in the North are hoping today's federal budget,the first from Justin Trudeau's government,will deliver on the Liberal Party's 2015 election promise to increase the Northern Residents Tax Deduction.

The Liberal Party's final platform, released last fall, pledged to "increase the residency component of the deduction by 33 per cent to a maximum of $22 per day" and to "index this benefit so that it keeps pace with inflation."

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"I'd like to see that promise fulfilled," said Julie Green, an N.W.T. MLA for Yellowknife Centre.

"It's a key promise to making the North more affordable for everybody who lives here."

The deduction has not increased since 2008.

Michael McLeod, the Liberal MP for the Northwest Territories, said during his campaign he would call on the federal government to provide funding for the replacement of the pipeline that provides Yellowknife its drinking water.

But that project, pegged at $15 million by the City of Yellowknife, doesn't need to happen until 2020, according to the city.

The N.W.T. government has applied for federal funding for a number of transportation infrastructure projects, including:

• an all-weather road heading south of Norman Wells to a source of gravel expected to be used during construction of the Mackenzie Valley Highway from Wrigley to Tulita
• the widening of portions of the Dempster Highway
• the chipsealing of the road leading from Inuvik's airport to the town proper
• the replacement of bridges between Hay River and Fort Resolution, in anticipation of heavy truckloads travelling from Fort Resolution to a planned wood pellet production facility in Enterprise.

Last week McLeod said funding for those projects was already approved by the federal government and that an official announcement would be coming "very soon."

Yukon has a wish list

The Yukon government also has several larger projects planned and is hopeful that federal cash will show up.

During last fall's election campaign Yukon MP Larry Bagnell promised that a Liberal government would be generous to the North.

"The affordable housing, which is huge, has been in the media in the Yukon for the last few years, and it's so exciting for me to have the biggest affordable housing program in Canadian history so we have so many things I can offer people," he said.

The Liberals also promised $40 million for the Nutrition North program over four years.

The federalbudgetwill betabled in Parliament at around 4p.m. ET.