To some observers, the Saskatchewan Party took a risk when the budget failed to spend all or most of the $2 billion estimated surplus on programs and services.
The budget was a stand pat fiscally conservative document — no new taxes, no tax reductions, paying down $1 billion debt and leaving $1 billion in the kitty for future spending.
An increased demand for the landlocked resources of Saskatchewan — potash, wheat, oil — will fuel the surplus.
Critics are vocal and numerous saying the budget overlooked real needs.
The $1 a day increase for the disabled and seniors’ income plans will buy one box of Kraft dinner a day. Rents for many of the people on these plans have increased more than that.
The health sector is outraged at the 6.7 per cent increase for Sask. Health. Spokespersons say it isn’t enough.
Nurses are ticked-off while the government notes that nurses got nine per cent a year over four years.
One telling failure of this budget appears to be lack of funding for education. Inflation in education is always greater than the consumer price so the 6.2 per cent increase won’t match inflation, let alone deal with growing enrolments.
The first Saskatchewan Party Premier, Brad Wall, used to boast that we will have lots of tax money for health care, education and other needs when the population grows but never told voters about the costs associated with population growth — education, health care, housing.
His successor Scott Moe seems to follow same path.
Paying off $1 billion debt is unnecessary, [as far as I am personally concerned]. Saskatchewan’s debt as a percentage of Gross Domestic Product at 14.1 per cent is the second lowest in Canada.
Reducing debt is a showcase for the rural base supporters who will re-elect the party. Thirty-three of the party’s 46 seats are rural/small city.
The Sask Party government removed the risk associated with salting away the surplus by looking after the base. The surplus can buy pre-election goodies in 2024.
The agriculture budget increased 19.1 per cent as increased funds were poured into crop insurance and farm risk programs.
Rural Saskatchewan looks to better days ahead in health care with $200,000 grants to attract new doctors, if they are effective, increased funds for rural emergency services and sky high salaries for itinerant nurses working in rural areas.
It seems nothing was in the budget for the average family struggling with inflation.
Farm supporters have fared well out of inflation even with incredible farm input price increases, thanks to higher commodity prices caused by Russian invasion of Ukraine.
The tax revenues lost from sales tax exemptions on farm inputs will be even greater this year, driven by higher input costs.
Interesting fact: the budget documents did not publish the loss in revenues from tax concessions to various sectors - first time in memory.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
