Provincial finance minister says best days ahead for Saskatchewan

It was a budget planning for the good times.

Saskatchewan Finance Minster Donna Harpauer tabled a $17.62 billion budget with more spending in pretty well every sector and only a few minor tax increases.

Focus was on health care, social services, education and protection to persons and property

“After two challenging and long years, Saskatchewan is back on track,” commented the minister.,

“The investments made in this budget will ensure our economy remains strong. Our best days are still ahead of us.”

The deficit, ballooned last year by pandemic response and assistance to drought-stricken farmers, will decline to $462.9 million from $2.184 billion last year. A balanced budget is in the works by 2026-27.

Deficit reduction gains momentum from increased revenue out of income taxes, sales tax and commodity prices.

Nearly $13.6 billion in major investments will help add to $850 million more taxes with 9,000 construction jobs and 2,330 permanent jobs.

Resource revenues will jump to $2.7 billion with $1.1 billion increase from potash and oil. Harpauer noted commodity prices are volatile and promised to closely monitor them.

The average oil price predicted at $75.75 US is well below the current $100 level and the forecast $402 US per tonne potash price is below recent $532 per tonne.

Tax increases include another $10.5 million from extension of PST to ticketed events like museums, sports event, concerts, movies, gym memberships, and greens fees with increased tobacco taxes garnering $12.1 million. Revenues from these will fund surgery wait list reductions.

School mill rate adjustments will pull in another $20 million.

Crown Corporation profits will decline $231 million to $742 million with most of the loss in SGI.

Health care spending of $1.6 million plans to return to pre-pandemic surgery wait lists by 2025, recruit 150 health care workers from the Philippines, more doctors in rural areas, and 150 new nursing training seats.

Under long term care 117 new continuing care aid jobs will be funded with $4.9 million to increase medical imaging service.

Eleven additional intensive care beds will be made in Regina and Saskatoon.

Rural emergency services will receive an extra $12.8 million.

Mental health and addiction spending of $470 million takes in seven per cent of the budget.

A $15.8 million increase for the cancer agency will provide treatment, a new oncologist and expansion of the bone marrow transplant program.

Education spending increases $47 million to $3.8 billion with nearly $2 billion for 27 school divisions, up by about 1.5 per cent. Increases will fund teachers’ salary increases.

With federal child care supports, $306.9 million will create 6,100 new child care spaces and reduce fees by up to 50 per cent.

A five-fold increase of the Creative Saskatchewan Production Grant program to $10 million will help with a $50 million increase in film and television productions.

Spending on protection to persons and property will increase $91.1 million (10.8 per cent) as the province continues creation of a Provincial Protective Service uniting all peace officers in one structure.

A new warrant and enforcement team will cost $.6 million with $6.4 million on a Saskatchewan Trafficking Response Team, $3.2 million on a crime reduction team and $4.5 million on gang violence reduction.

Upgrading parks will take $12.5 million.

Revenue sharing with municipalities is $262.5 million with $448.5 million in other support to municipalities.

Programs for the Indigenous community increase $233 million with $475,000 to create the Saskatchewan Indigenous Investment Finance Corporation that will guarantee up to $75 million in loans to communities and organizations.

Capital spending by government includes 15 new schools and five renovations with one in Moose Jaw.

Highways include highway twinning on Highways 6 and 39 south of Regina.

Spending on farm management programs is reduced by $338.5 million with $2.5 million allocated to irrigation. projects.

Ron Walter can be reached at ronjoy@ sasktel.net