The Canadian Federation of Independent Business (CFIB) has weighed in on the 2019 provincial budget, applauding the government for keeping spending to sustainable levels without increasing taxes.
“Overall, this budget sends the right signals to Saskatchewan entrepreneurs,” said Marilyn Braun-Pollon, CFIB’s vice-president, prairie & agri-business in a press release. “Small business owners were looking for three things in today’s budget: a balanced budget, with sustainable spending, without hiking taxes.”
In terms of sustainable spending, Braun-Pollon highlighted the government's decision to limit spending to 2.6 per cent in 2019 and 2.1 per cent in 2020.
"When surveyed on how the government should balance its budget, 76 per cent of Saskatchewan small business owners supported spending restraint.”
Braun-Pollon also noted that they were pleased to see the size of government reduced through finding efficiencies and workforce attrition.
She cautions that surpluses should not encourage significant spending increases.
“Now that we’re back to balance it will be critical for the government to keep an eye on their spending. Surpluses should not be a license to significantly increase spending on feel good initiatives in future budgets,” noted Braun-Pollon. “Nor should surpluses be a green light for the government to sign onto expensive, outdated and gold-plated collective agreements.”
The CFIB is glad the budget contains no increases to tax rates. All provincial tax rates, including provincial sales tax, income tax, and property tax remain the same.
“Given the significant cost increases Saskatchewan small business owners are already facing with CPP premium increases, the federal government’s tax changes, as well as the federally-imposed carbon tax, our province’s job creators will be relieved that the budget contained no new taxes or tax increases.”
The CFIB also says that, due to increases in municipal revenue sharing, the organziation will urge municipalities to use the funding increase prudently. Specifically, the CFIB wants to avoid annual property tax hikes.
“Overall, business owners will like the direction of this Budget,” concluded Braun-Pollon. “As the province’s finances improve in the coming years, the government will need to provide much-needed tax relief.”
