The Saskatchewan budget that was brought to the public domain on June 1, bore very few surprises, but also a few ominous notes within the pages that indicated a deficit situation for the province for the next nine months, until a new budget is brought down next spring.
Finance Minister Kevin Doherty delivered his first budget since being appointed to that position by Premier Brad Wall and the document revealed a projected $434 million deficit within the operating budget, due mainly to a decrease in resource revenue.
The total revenue expected within this fiscal year will be $14 billion, while the health portfolio will, once again, top the list of spending ministries at just over $5.1 billion while education will gobble up another $3.7 billion.
On the positive side, there were no new taxes applied to the budget, not even for the traditional easily taxed items such as liquor and tobacco.
Another positive sign was the government insistence on not stalling on projects already under construction or well along in the planning stages. That includes the continuation of construction of a twinned Highway 39 between the Bienfait junction and Estevan, which will see a further $8.1 million invested this summer and fall, as part of a much larger plan to twin Highways 39 and 6 between Estevan and Regina.
The spending on highway infrastructure will continue unabated as the province moves forward on an ambitious multi-billion dollar project to build three overpasses near Regina and a major bypass around the Queen City.
In fact, $3.5 billion will be invested in infrastructure projects through the Saskatchewan Builds Capital Plan and by the Crown corporations in 2016-17.
Power transmission lines are being added and repaired in the electrical grid system and 18 schools are being built using the private, public partnership (P3) models, although none of them are slated for southeast Saskatchewan.
On the post-secondary capital project front though, a total of $2.2 million in funding has been allocated to the Southeast College for the completion of their new head office and classrooms in Weyburn.
SaskEnergy, SaskPower and SaskTel will be injecting close to $1.8 billion in capital projects.
“Our four-year capital plan establishes a commitment for $5.5 billion in executive government capital,” said Doherty as he tabled the budget in the legislature on June 1.
What was included in the budget was a sustained contribution to urban municipalities under the revenue-sharing program that sees $271.6 million (an increase of 2.4 per cent) going to Saskatchewan’s cities with $2.41 million of that earmarked for Estevan and $2.29 million for Weyburn.
On the agricultural front, the news was heartening with an increase of 7.5 per cent over the previous year, to a total of just under $390 million.
Social Services also received a boost in the budget, moving up to $1.05 billion, a hike of 5.1 per cent.
Reactions to the budget and its implications are found in this week’s edition of the Mercury.
Subhead for Sidebar story:
Budget by the numbers
Deficit
$434 million
Total Revenue
$15.02 billion
Increase in Education Funding
1% to $3.7 billion
Increase in Health Funding
1.5% to $5.17 billion
Increase in Municipal Revenue Sharing
2.4% to $271.6 million
$2.41 million for Estevan
Increase in Agriculture Revenue
7.5% to $389.9 million
Increase in Social Services Funding
5.1% to $1.05 billion
Increase in University Funding
0 % remains at $475 million
Funds for Highways and Infrastructure
$1.15 billion which includes $8.1 million for
Highway 39 twinning- Bienfait junction to Estevan.
