A deficit budget has curtailed the large-scale cuts expected in Alberta’s 2010 budget.

The Province unveiled its budget on Tuesday afternoon which included a record $4.7 billion deficit, a $1.7 billion increase in overall spending despite some funding cuts.

Finance Minster Ted Morton, who is the Foothills-Rocky View MLA, said the budget wasn’t going to please everyone, but it’s focused on the Province’s priorities of health, education and protecting vulnerable Albertans.

“Budget 2010 strikes the right balance between fiscal discipline and protecting core programs. It enhances our competitiveness by keeping taxes low and investing in infrastructure for the future, and positions us to be back in the black within three years,” he said.

The Province will increase funding for health, basic education and supports for seniors and vulnerable Albertans.

Health funding will rise by $1.3 billion, including a one-time payment of $759 million to pay off Alberta Health Services’ deficit.

Benefit levels will be maintained for recipients of Alberta Seniors Benefit and Assured Income for the Severely Handicapped and funding remains at $597 million for the Persons with Developmental Disabilities program.

Morton also announced $20.1 billion will be spent on infrastructure over the next three years, including $7.2 billion in 2010-11.

The Province is relying on its savings to cover the deficits and pay for infrastructure. The deficit will be offset by transfers from the Sustainability Fund, as will the forecast deficit of $3.6 billon for 2009-10.

The Tories expect Alberta will be back in the black in 2012, when it is projecting a $505 million surplus.

Opposition parties spoke out against the budget.

Wildrose Alliance leader Danielle Smith challenged some of the government’s priorities and its reliance on higher energy revenues to reduce the deficit.

“The PC government’s ‘cross your fingers and hope for the best’ approach to budgeting continues to let Albertans down,” said Smith. “We support efforts to lower the deficit but we could still be in a surplus position if this government had shown real leadership, actually listened to experts and limited their past spending.”

Smith said the Province has not gotten spending under control in the budget.

Liberal leader David Swann said the budget is proof the Tories don’t have a serious plan for the province.

“They don’t have a spending problem; they have an incompetence problem,” Swann said. “Isn’t this the same government that was telling us two years ago that health care spending was out of control?”

Swann said throwing huge amounts of money at health care isn’t a fix.

“Given the mess the (Premier Ed) Stelmach Conservatives made of the public health care system in the past few years, why should anyone believe that more cash will reduce wait times, improve accessibility, or address inefficiencies,” he said.

Swann questioned why the Sustainability Fund isn’t being used to protect child intervention services and income supports, both vital public services in tough times.

The head of the union representing provincial employees said cuts to some ministries will hurt services Albertans rely on.

“A smaller budget would put more vulnerable Albertans at risk, jeopardize public safety, compromise environmental protection, and leave health care and education to suffer,” said Guy Smith, Alberta Union of Public Employees.

The Province’s operating expenses for 2010-’11 will total $38.7 billion, which will be split up between the Province’s 24 ministries with:

• $6 billion education.

• $15 billion for health.

• $3.2 billion for advanced education and technology.

• $2 billion for seniors and community supports.

• $1.1 billion for children and youth services.

• $1 billion for agriculture and rural development.

• 2 billion for transportation.

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