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Reaction to the federal budget was predictably mixed Tuesday with economists saluting the budget, while educators, environmentalists, natives, and child-care advocates cried foul.

The Tories took a mainstream, "realistic" approach to the budget, according to Sherry Cooper, chief economist for BMO Nesbitt Burns, in an interview with the CBC.

"This is a stimulative budget, a tax cutting budget, and it's likely it's stimulating a very hot Canadian economy," she said. "If anything, over the last number of years we've seen enormous surpluses, much bigger than expected. The economic assumptions in this budget are pretty much mainstream."

Ms. Cooper said the only concern she could foresee is the danger posed by inflation, but she said, much of that would be mitigated by the strong Canadian dollar.

"In general, though, I applaud the budget," she said.

But child-care advocates accused the government of doing nothing for early childhood development.

The Tories plan to issue $100 a month to parents with children under the age of six would make the search for child-care spots even more difficult, according to the Child Care Advocacy Association of Canada (CCAAC) said

"This government doesn't understand the benefits of early learning and child care or how to develop it," said CCAAC co-chair Debra Mayer. "An allowance to parents is not an early learning program for children."

In cancelling the child care agreements with the provinces, the Harper government took $3.6-billion away from Canadian communities, Ms. Mayer said in a statement.

The federal government's previous agreement with the provinces would have expanded early learning and child care options for over 100,000 families; improved access, particularly for low income and rural families and for children with special needs; and enhance intervention services for children at-risk, she said.

The CCAAC said it was particular vicious of the government to single out aboriginal children for a $25-million cut.

Educators, parents, and school trustees also condemned the federal government Tuesday for "short-changing" children.

"Failing to uphold the federal-provincial child care agreements, the Prime Minister and his government have chosen to forego a once-in-a-generation opportunity to give our children the kind of start that assures their readiness to succeed in school and in life," the Ontario Public School Boards' Association said in a statement.

Likewise, universities and colleges will be worse off as a result of the first Harper budget, according to the Canadian Association of University Teachers.

"We're shocked that the Harper government has cut half a billion dollars out of the post-secondary education funding committed by the previous government," said Greg Allain, president of the CAUT.

Mr. Allain also voiced concern over the level of new funding for research and students struggling with the expense of increased post-secondary education.

Post-secondary students also condemned the budget and the proposed tax changes for students, including a $65 a month tax credit for textbooks, and eliminating the taxation of scholarships. Currently, scholarships are tax free up to $3,000.

"For many students the changes will have no impact," said George Soule, national chairperson of the Canadian Federation of Students. "A lot of students don't even earn enough taxable income to use all of their existing tax credits."

Retailers applauded the government's plan to reduce the GST by 1 per cent, but were concerned about doing so on July 1, 2006.

"I am baffled by the fact that the GST reduction will be effective not only on Canada Day, a statutory holiday, but also the fact that it is a Saturday," said Diane J. Brisebois, president and CEO, Retail Council of Canada.

The Assembly of First Nations said the budget would ensure that natives remain in "last place."

"This disappointing budget does not begin to address the gap in quality of life between First Nations and other Canadians and could increase the gap through inaction," the AFN said in a statement.

The federal budget promises fell short of the $5.1-billion commitment made by Liberal government in Kelowna, B.C. last year. The Toreis promise  $150-million in 2006-2007, and $300-million in 2007-2008, towards improving the quality of water and housing on reserves, as well as education and socio-economic conditions for Aboriginal women, children and families.

"These were not commitments from a particular party, but by the federal and all provincial and territorial governments. The Minister of Indian Affairs, Jim Prentice, has stated publicly that he was committed to 'putting the wheels on Kelowna.' Why is it now necessary to reinvent the wheel?" the AFN said.

The David Suzuki Foundation accused the federal government of being "irresponsible" in backing away from its Kyoto Protocol commitments for what it says are "vague promises to cut greenhouse gas emissions."

"Prime Minister Harper has dismantled the only climate change plan our country had and replaced it with subsidized transit passes that will do little to fight air pollution or convince people to leave their cars at home," said Dale Marshall, the Suzuki Foundation's Ottawa-based policy analyst. "It's completely irresponsible."

However, the Federation of Canadian Municipalities commended those same commitments in Finance Minster Jim Flaherty's first federal budget, and the Tories first in 13 years.

"From our vantage point, this budget lays out a road map for resolving one of the most intractable issues in our communities: the chronic funding imbalance," FCM president Gloria Kovach said in a statement. "We therefore applaud the government's reiteration of its determination to tackle the fiscal imbalance."

The FCM also applauded the Tories promise to continue funding for existing infrastructure programs.

According to the FCM, the budget also goes a long way toward addressing a number of other municipal priorities; including investment in affordable housing, safer street, and public transit.

The Canadian Urban Transit Association (CUTA) also commended the government on its promise to invest in public transit and give tax credits for transit pass users.

"We're very encouraged that today's budget confirms that this crucial transit funding will now flow, and that it will continue to flow in future years," CUTA President and CEO Michael Roschlau said.