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Budget estimates presented amid COVID-19 crisis

With COVID-19 wreaking havoc on revenue estimates, the government of Saskatchewan has opted to present scaled-down budget estimates Wednesday instead of a full budget.
Donna Harpauer
Finance Minister Donna Harpauer.

With COVID-19 wreaking havoc on revenue estimates, the government of Saskatchewan has opted to present scaled-down budget estimates Wednesday instead of a full budget.

The estimates were being presented without revenue forecasts, said Finance Minister Donna Harpauer, because of the ongoing pandemic.

"This is an unprecedented and challenging time in our province, our country and the world," said Harpauer in a conference call Wednesday morning.

"We are all feeling the impacts of the pandemic, and our government's first priority is the safety and health of Saskatchewan people. Some governments in Canada have chosen to delay their entire budgets as a result of the pandemic. We considered doing the same, but have decided to proceed with the budget estimates so that vital spending in health care and education and in other areas can proceed." 

This would provide vital stability, Harpauer said, at the start of the fiscal year. She said the province had a very strong cash position of $1.3 billion and were well positioned to "manage through this challenging time." 

The budget highlights were released in highly unusual fashion, with Harpauer not even making a presentation in the legislature, instead tabling the estimates.

The legislature met briefly at 1:30 p.m. and adjourned immediately due to the COVID-19 virus. 

Highlights of the 2020-21 estimates are as follows:

The estimates represent $14.15 of government expense throgh ministries and agencies, an increase of 3.1 percent from a year ago.

There is capital investment of $2.7 billion by Crown corporations and Executive Government which would serve as an eonomic stimulu during this time. 

The Mibnistry of Health's expense if $5.77 billion, an increase of more than $211 million or 3.8 percent from a year ago.

askatchewan Health Authority will get a $3.74 billion grant this year for an increase of $140.6 million, up 3.9 percent from last year.

Health funding will include $434.5 million towards mental health and addictions supports and services including a targeted increae of $12 million compared to last year, with nearly $5.8 million to support addictions initiatives and a further $6.2 million to fund enhanced mental health services.

The spending will establish specialized crystal meth inpatient treatment services in Estevan and increase access to mental health and addictions treatment beds and supports.

$20 million is go to address surgical wait times and pay for 3,700 surgeries. The Saskatchewan Cancer Agency will also rceive a further $18.4 million, up ten percent , bringing their annual grant to $196.4 million.

Education will be spending $2.57 billion for an increase of $86 million or 3.5 percent. The 27 school divisions will receive operating funding of $1.94 billion, a $42 million increase.

Social Services spending is up $50.6 million to $1.29 billion. It includes increased funding of $10.9 million to third party service providers, including a $6.8 million increase for those who work with people with intellectual disabilities. Service providers supporting at-risk children, youth and families receive a $2.5 million increase.

Other highlights include $278 million in municipal revenue sharing, up $27 million from last year or 11 percent.

There is also $85 million for the Saskatchewan Public Safety Agency, which supports the province's people, municipalities and service providers, and is positioned to address any emergency that may arise. There is also an increase of $1.7 million in spending for th Gang Violence Reduction Strategy to help address gun and gang activity in the province.

There will also be an increase of $14 million to fund operations of community-service organizations.

A PSTb rebate will be provided for new home construction, of up to 42 percent of the PST paid on a new house contract up to $350,000 excluding the land, for new homes purchased after March 31 2020 and before April 1 2023.

There is nearly $142 million in health care capital spending including $15 million for planning, design, and procurement acticities for the renewed Prince Albert Victoria Hospital.

There is almost $648 million going to improve the safety and capacity of highways, with more than 1,000 kilometres to be upgraded in 2020-21.

Municipal infrastructure spending will by nearly $166 million. $850,000 has been allocated to the Community Airport Partnerships program, an increase of $150,000. 

There are other items outlined in the budget estimates including the Oil Infrstructure Investment Program, investments by Crown corporations of $1.7 billion in the next year, and $130.4 in education capital spending.

 

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