Saskatchewan Finance Minister Donna Harpauer delivered the 2020-21 budget on March 18 and acknowledged that the provincial government was asked to wait to announce the budget until after normalcy returned.
“Today’s 2020-21 budget estimates are being delivered at a challenging time in our province, our country and the world. Given everything that has changed in the past few weeks, some are asking, why go ahead with the estimates at all today? Why not wait?” Harpauer said in a news release.
The main investments in this spending plan for the upcoming year provide stability and include significant spending lifts in many areas — including health — and significant economic stimulus through capital spending, she continued. The people of Saskatchewan need that right now. If the province didn’t proceed with tabling the estimates, it wouldn’t be able to move ahead with any new spending initiatives or stimulus as it starts the new fiscal year.
“Is it enough to fully address the impact of COVID-19 in Saskatchewan? Nothing is certain right now. More may have to be done to address both the health and economic impacts of COVID-19,” Harpauer said. “At this point, the full impact of federal measures is uncertain. We may have to make adjustments to address the economic fallout caused by this pandemic.
“We fully recognize that this may mean a deficit. Our government will act to protect Saskatchewan people. We will take the necessary actions, provide the required resources, and provide regular financial updates throughout the year.”
This year’s estimates include record-spending for the Ministry of Health of $5.77 billion an increase of $211 million or nearly 3.8 per cent from last year, the news release said. That includes $3.74 billion, an increase of $140.6 million or nearly four per cent, for the Saskatchewan Health Authority. This funds the doctors, nurses, and other health-care professionals who are battling against COVID-19, while also meeting all the other health needs.
The 2020-21 estimates will initiate $2.7 billion in infrastructure investment that will create an economic stimulus and create jobs at this challenging time, added Harpauer. Saskatchewan is in a strong financial position to meet these challenges head-on. Saskatchewan has:
- One of the lowest net debt-to-GDP ratios in the country;
- $1.3 billion in cash reserves;
- shifted reliance on resource revenues from a high of 32 per cent to the current 12 per cent, of which oil has declined from 13.3 per cent to 4.7 per cent;
- a significant increase in health funding that delivers major capital funding to keep the economy strong
For more information visit www.saskatchewan.ca
