Lack of tax relief in budget is telling
Decisions show Sask. Party is only listening to a select few
The problem for governments with a penchant for only listening to a select few becomes rather glaring on a budget day that is, supposedly, about listening to everyone.
It quickly gets awkward, as may now be obvious in the laboriously themed 2024-25 Saskatchewan budget: Classrooms, Care & Communities.
Classrooms? Care? Communities? Tell that to hundreds of striking teachers who were already encircling the legislature by 8 a.m. on budget day in support of the cumbrous notion that spending on classroom composition and complexity solutions should be incorporated into the teachers' contract.
There are likely others — perhaps many others — that may have similar trust issues. Of course, this isn't the case for everyone.
Why the Sask. Party has won four consecutive terms has a lot to do with being able to connect with those it needs to connect with to win.
For example, farmers connect well. They saw the Sask. Party government come through for them with an extra $1.1 billion in agricultural spending in 2023-24 — largely due to exceedingly high crop insurance claims.
The rural-based government said it would do that regardless of the costs. And while there were, surprisingly, no general tax reductions in this election budget, farmers will remain exempt from the provincial sales tax, saving in 2024-25 an estimated $121.3 million on farm machinery and parts, $339.4 million on chemicals, seed and fertilizers, $176.8 million on agriculture, health and life insurance plus another $89.7 million by being exempted from the fuel tax.
By pale comparison, Premier Scott Moe again claimed Wednesday he is saving Saskatchewan households about $400 each annually by removing the carbon tax from their home heating bills (although that doesn't calculate the amount Saskatchewan households may be losing if the federal government removes all or part of the carbon reduction incentive rebates).
There are others who may similarly be pleased with 2024-25 budget tax breaks for resources, businesses and corporations.
By maintaining the small business corporate income tax rate at one per cent for another year (it was scheduled to increase two per cent on July 1), Saskatchewan small businesses will save
$56 million.
There were a whole series of other tax-break policies extended including: the Saskatchewan Technology Startup Incentive, the Saskatchewan Commercial Innovation Incentive, the Saskatchewan Petroleum Innovation Incentive, and the Saskatchewan Critical Minerals Innovation Incentive, plus a new multilateral oil well program.
All are designed to enhance employment opportunities in the resource sector, but officials could not be definitive on the total they might cost in foregone tax revenue.
Clearly, farmers, business and those in the resource sector continue to have the Sask. Party government's ear in this election, as they've had in previous years.
But what about everyone else? For a budget all about caring, you'd think there would be more for nursing homes, emergency rooms, drug addictions and mental health. Surely, this is what the government has repeatedly been told.
In fairness, it's not as if the government completely ignored soft-side issues. Again, this is an election year and this is a Sask. Party government that prioritizes spending over fiscal prudence. (Finance Minister Donna Harpauer told reporters Wednesday she was encouraged by Premier Scott Moe to spend more.)
There is a $17-million annual increase in the Saskatchewan Employment Incentive, $16.7 million for a new Provincial Approach to Homelessness, $13.7 million more for community-based organizations, $9.6 million to repair Sask. Housing Units and $7.4 million for the Saskatchewan Income Support (SIS) program.
In health, the 2024-25 budget presents even more widespread benefits, including $214 million for physicians compensation and programs, $29.2 million more for recruitment and retention, an $8.6-million increase for surgical and diagnostic imaging and $3.5 million more for breast health.
But any government strategy to help address inflation costs or simply provide needed services to people who are struggling seemed about as cohesive as the Classrooms, Care & Communities theme of this year's budget.
Why this is the case is puzzling. But it seems obvious that this Sask. Party government still struggles to listen to those it's been accused of ignoring.