The Saskatchewan Party government announced the budget March 23, offering tax breaks and extra spending. It is the last budget before the provincial election this fall.
Finance Minister Ken Krawetz unveiled the budget in a cheerful mood, reporting spending will come in at $10.7 billion, while revenues are slated to round out at $10.8 billion. This sets the province up for a $115 million surplus in the general revenue fund covering the ministries. There is $54 million surplus expected for the summary accounts, which includes Crown corporations as well as ministries. "While other provinces are recording deficits, we will post a surplus," Krawetz said. "While others will struggle to maintain programs, we will improve our public services. While others will see their debt loads increase, we will reduce our debt. This budget will continue to strengthen our economy and make life more affordable by reducing taxes."
There are tax breaks for virtually everyone - families, individuals and businesses.
Basic and spousal exemption amounts are increased by $1,000, with the exemption amount for dependent children rising by $500 per child. This means the basic and personal exemption is now $14,535 and the dependent child amount is $5,514.
"These income tax changes, together with the previous reductions introduced by our government, mean that a family of four earning $50,000 combined income will save $2,447 in income taxes this year," Krawetz said. "It also means another 22,000 people coming off the tax rolls. In four years, we have eliminated provincial income tax for 114,000 Saskatchewan people."
The small business tax rate is being reduced from 4.5 per cent to 2.0 per cent beginning July 1 of this year.
Farmers will save in the budget too, as farmland sees the biggest percentage of the education property tax reduction. With a $55.6 million education property tax reduction, $31.2 million is on farm land, $18.7 million is for residential property and the remaining $5.6 million is for commercial property.
Health care regions - Sun Country to name one - will receive extra money in the budget, as health spending is going up by 6.2 per cent, or $260 million, to about $4.5 million. The regions receive the bulk of the increase, likely to help cover higher expenses due to new contracts.
Other budget highlights include:
$216.8 million in revenue sharing with municipalities, meeting the commitment to provide them with one full point of the Provincial Sales Tax (PST);
$250 million more for Regional Health Authorities (RHAs) base funding, a 9.7 per cent increase;
$12.6 million or 11.5 per cent more for the Saskatchewan Cancer Agency to allow for a doubling of bone marrow transplants, additional colorectal screening and more cancer treatments;
$5 million for a new emergency helicopter air ambulance service;
$34 million more across government on a Children and Youth Agenda to improve child welfare, education and health care through a more integrated approach;
$24.6 million to post-secondary institutions through Advanced Education to allow them to hold tuition increases to an average of three per cent;
$556.2 million in the Highways budget, including more than $400 million for capital spending and maintenance work;
$19.9 million for new capital projects in Education, including $13.9 million for school capital, $4 million for school based child care capital and $2 million for Pre-kindergarten capital funding. This is in addition to the $60 million in school capital announced at the Third Quarter of 2010-11;
$1.7 million for two new housing initiatives to create more affordable housing in Saskatchewan. This is on top of $33.9 million announced earlier this month which will go toward renovation of existing government assisted housing and to support the development of new housing, as well as $1.5 million for Habitat for Humanity;
$167.2 million across government for First Nations and Métis programming, an overall increase of $13.1 million;
$320.8 million to fully fund farm income stabilization programs; and
$13.2 million extra for policing services, an 8.5 per cent increase, including $5.2 million to complete the government's commitment to hire 120 police officers over four years.
The government is paying down the General Revenue Fund debt by $325 million this year, bringing the debt down to $3.81 billion.
"That's a reduction of $3 billion, or 44 per cent, since our government took office," Krawetz said. "Debt reduction is not just a lofty accounting principle. It means lower interest costs and more money to pay for important government services in Saskatchewan."
NDP Leader Dwain Lingenfelter said the budget fell short of addressing issues facing many in Saskatchewan.
"Times may be good for our resource sector and we can see the impact that increased demand for our products has had on the government's bottom line," Lingenfelter said. "But it's disgraceful that the Wall government has done so little to help those who need help coping with the increased cost of living when it had so much to work with. This may go down in the books as the most uninspiring way anyone has ever spent $11 billion dollars."
