The Government of Newfoundland and Labrador brought in what many are describing as a pre-election budget on March 27.

Spending is up and much of the focus was on education.

Finance Minister Joan Marie Aylward promised Memorial University a $13.1 million increase in its sustaining grant to fund a 5 per cent reduction in tuition fees for undergraduate students and to provide additional revenue for operating and infrastructure expenses.

Aylward said the tuition reduction brings total reductions to 25 per cent over the last three years.

She also said tuition rates remain frozen for the Marine Institute, the College of the North Atlantic and Memorial's graduate program and medical school.

Liam Walsh, Newfoundland and Labrador chairperson of the Canadian Federation of Students, said students are angry at the failure of the government to keep its promise to implement reductions for all students.

"Cancelling the tuition fee reduction for graduate students this year is just mean-spirited," Walsh said after the budget was brought down. "An allocation of only $250,000 would provide for a reduction for all graduate students."

Walsh said the budget ignored the heavy burden of fees on graduate students.

"Graduate students have already been subjected to the largest tuition fees in the province's history throughout their undergraduate studies, and they often have the largest student debts. If this is an education budget, it's time for the government to go back to school," he said.

There is a new Student Loan Tax Credit program. A tax credit of up to 20 per cent of the amount paid on the principal portion of a provincial student loan will be available to residents of the province. According to the government, this credit is unique in Canada and is designed to assist students who choose to live and work in the province repay their debt.

But Bill Schipper, president of Memorial University of Newfoundland Faculty Association, cautioned the tax credit would provide less than what one might think.

"During a student's first years after graduation, when they most need help with high student loan repayments, the bulk of payments is mainly interest - just like with a mortgage," Schipper said. "The tax credit only applies to payments against the principal, a very small part of the first years' costs."

He noted the increase to Memorial should allow the administration to fund wage increases to bring academic staff salaries closer in line with their colleagues in the rest of Canada.

"We're in salary negotiations now," Schipper said. "A small portion of the new money would allow the administration to easily meet the fair salary increases we are proposing."

Students in the K-12 system got a reprieve from recommended cuts to student-teacher ratios, along with new library books and computers. The government promised a $12 million investment to retain 218 teaching positions in the new school year, a move Aylward said would ensure the province maintains the best pupil-teacher ratio in Canada. The budget also put almost $7 million into capital construction projects and school maintenance and repairs.

The budget anticipates no public-service layoffs or cuts to social programs.

The only new taxes are on tobacco and liquor.