Chiefs from across Canada are warning of a potential surge in native blockades led by an increasingly frustrated and militant youth movement.

The virtual exclusion of First Nations from Monday's federal Conservative budget was a slap that may hit back, they warned Tuesday.

Indian Affairs Minister Jim Prentice said plenty of money is being spent on native causes, but the chiefs say First Nations are falling ever farther behind.

"It's scary," said Angus Toulouse, Ontario vice-chief of the Assembly of First Nations.

"If people aren't being heard, if (land) claims aren't being addressed ... you can bet there's going to be much more confrontation and barricades."

"Do I advocate it? No. But the young people are going to be taking matters into their own hands."

Don Maracle, chief of the Mohawks of the Bay of Quinte in Eastern Ontario, said it's tough to convince a burgeoning native youth population that real change can come through official channels. The status Indian population is young, with a median age of 25 compared to 35 for all Canadians, according to Indian Affairs.

"The younger First Nations people have run out of patience," Maracle said. "They don't have the patience the older generation does to tolerate inequity."

Toulouse and Maracle joined chiefs from other parts of Canada to slam a federal budget they said is beyond disappointing. The second Conservative budget contained $6 billion in direct program spending for everything from meals for long-haul truck drivers to museum internships that promote culture.

It includes $70 million over two years for aboriginal training, justice and a commercial fisheries program. Another $300 million set aside to encourage private home ownership on reserves is complicated by the fact that First Nations typically view land and property as collective assets.

Absent was any new spending to build desperately needed new housing or to boost funding levels that have long lagged behind population growth, chiefs say.

Prentice said his government will spend just over $10 billion this year for aboriginal programs.

"There are many areas where we have to make more progress - no one disagrees with that," he said.

"But the money we're speaking of is over $16,500 per citizen on reserve. It's a large sum of money and we have to make sure it's being properly spent and that we're seeing progress on the areas that are important: women and children, housing and education."

Much of the cash is to honour Ottawa's historic treaties with First Nations. Native leaders say it does not keep pace with inflation let alone population growth.

Prentice, while in opposition, said aboriginal poverty was one of the most pressing crises facing Canada.

He noted that the new budget, though it stops short of a funding commitment, pledges to help settle land claims. And he vowed to keep working with the chiefs on problem areas.

"No one wishes to see blockades," he said. "And that's not how we do business."