Saskatchewan’s “challenging budget” features controlled spending
Delivering what he described as a "challenging budget", Saskatchewan Minister of Finance Ken Krawetz announced a budget highlighted by controlled operating spending.
The province had considered increasing the Education Property Tax, but ultimately decided to keep mill rates at their current levels when the budget was announced on March 18. There were also no personal tax increases or additional taxes in the balanced budget.
“This budget is about keeping our economy strong and keeping our province strong,” Krawetz stated in the budget address in the Legislature. “We will do that by controlling operating spending, not raising taxes, and continuing to make record investments in much-needed infrastructure projects like highways, schools and health facilities.”
Total revenue for the year is projected at $14.28 billion, an increase of 1.2 per cent from last year. Budgeted expenses have reached $14.17 billion, also a 1.2 per cent increase from a year ago
However, the budget is projecting public debt to be $13.3 billion in 2015-16, up from $11.7 billion from Budget 2014-15. The General revenue fund operating debt remains at $3.8 billion in 2015-16, unchanged from Budget 2014-15.
Saskatchewan budget, themed Keeping Saskatchewan Strong, credits the strength of potash as a partial offset of the impact of lower oil prices.
"Given the current volatility in our revenue streaming from the significant drop in the price of oil, we had to make some difficult but necessary choices. However, our Government's preference will always be to balance the budget by con- trolling spending rather than by raising taxes."
Strength in the potash industry and a change in the Potash Production Tax will help offset the $661 million decline in oil revenue from last year’s budget due to the falling oil price. The total tax deduction potash producers receive from their capital spending will now be used over a longer period of time.
“As a result of this change and overall growth in the potash industry, potash revenue is expected to be up by nearly $400 million this year,” Krawetz said. “This change was made following consultation with the potash industry, which continues to show tremendous confidence in Saskatchewan through major capital expansions."
“This interim step will be followed by a broader review of the entire potash taxation and royalty regime. The review will look at ways to simplify the tax and royalty system, balancing incentives for new investment with ensuring that Saskatchewan people benefit appropriately from their resource.”
The 2015-16 Budget provides $5.5 billion in total spending for health care, up 1.1 per cent from last year.
SThis budget includes $3.7 billion for education spending, up 2.8 per cent over last year, and investments in social services will reach $1.2 billion in this budget, an increase of 3.2 per cent over last year.
The 2015-16 Budget includes $265.3 million for municipal revenue sharing, the largest revenue sharing grant ever from the province to municipalities, up $8.3 million from last year. Overall there is $346.2 million of direct provincial support to municipalities.
Swift Current will be receiving an all-time high $3.31 million in revenue sharing funding, up slightly from the previous high of $3.3 million in 2014-2014. Swift Current receives the sixth highest revenue sharing amount in Saskatchewan.
A highlight area of the budget in Saskatchewan confirming the start of the four-year Saskatchewan Builds Capital Plan where $5.8 billion will be spent to construct and maintain needed infrastructure such as schools, health care facilities, municipal infrastructure, roads, bridges and highways.
This budget provides more than $1.3 billion for these core infrastructure projects in 2015-16, the largest infrastructure allocation in Saskatchewan's history and an increase of almost 50 per cent from last year.
A total of $581 million will be spent on highways and transportation infrastructure, $248.5 million for K-12 schools, $46.6 million in universities and regional colleges; plus $256.4 million for health capital projects.
The 2015-16 Budget provides $5.5 billion in total spending for health care, up 1.1 per cent from last year. Saskatchewan's Regional Health Authorities will receive $3.3 billion, up $55.7 million from last year’s budget, for operating funding and targeted initiatives. Included in this total is $71.1 million for the construction of the Swift Current LongTerm Care Facility and Leader Integrated Care Facility.
The 2015-16 Budget includes $3.7 billion for education spending, up 2.8 per cent over last year’s budget. There is a total of $1.87 billion for total operating funding to school divisions, an increase of $52.8 million, or 2.9 per cent. Post secondary operating funding was increased one per cent to $661.2 million for universities, affiliated colleges and regional colleges, while technical institutes and federated colleges will realize a two per cent operating increase.