The provincial government will be spending $17.6 billion in the upcoming fiscal year, an increase of $531 million from last year. The revenues will be up from $2.7 billion from the previous year, largely due to higher potash and oil prices than what was originally forecast. The deficit will also be down from the last budget, at $463 million from $2.1 billion the previous year.

“We are seeing strong economic growth and job creation as we come out of the pandemic and as a result, the provincial's financial outlook has improved significantly,” said Finance Minister Donna Harpauer. "The deficit has been reduced by over $2.0 billion. Our economy is growing, with 30,000 new jobs created over the past year and the second-highest rate of job growth in Canada so far in 2022.”

Aside from seeing the increase in non-renewable resources, which came out to roughly $2.9 billion, taxation brought in $8.1 billion. There was $3.2 billion in transfers from the federal government, and other revenues came in at around $2.2 billion.

The expenses, which were up by 3.1 percent from the last budget, will see $1 billion going to agriculture, $729.9 million for community development, $327.7 million for economic development, $3.8 billion for education, $371.9 million for environment and natural resources, $812 million in financing charges and interest, $544.6 million for general government expenses, $6.8 billion for health, $936.2 million for the protection of people and property, $1.6 billion for social services and assistance, and $610.3 million for transportation.

 

Made with Flourish

The theme of the budget for the provincial government this year was back on track, with the provincial economy returning to and exceeding pre-pandemic levels in many metrics.

Some of the highlights in the budget include the 4.4 percent increase in the health budget. This included $21.6 million to address the surgical waitlists, which were extended by the COVID-19 pandemic and a $17 million increase for services for seniors. The budget also establishes a new agency dedicated to recruiting and retaining healthcare workers.

Another $3.5 million in the budget is targeted for physician recruitment and initiatives, with an emphasis on family physicians working in rural parts of the province.

Capital expenses for healthcare will total $156.6 million and include $53.9 million for ongoing projects in Prince Albert, Weyburn, Regina, Saskatoon and several long-term care projects throughout the province. Another $57.3 million will be for the rehabilitation and maintenance of health facilities and $45.3 million for IT and medical equipment.

Education spending will be up by 1.3 percent from 2021-22, at $3.8 billion. The 27 school divisions will be receiving nearly $2.0 billion, which will be intended to fully fund the 2 percent salary increase as part of the recent collective bargaining agreement with teachers. There is also money set aside for the hiring of up to 200 additional full-time educational assistants in the province.

Operation grants and capital grants of 684.1 million are being provided for post-secondary institutions. This includes $445.9 million for the Universities of Regina and Saskatchewan and all federated and affiliated colleges. Another $4.9 million from the budget will be used for the expansion of nurse training by 150 seats in the province.

The Ministry of Education and the Ministry of Advanced Education will see a combined $199.6 million for capital investments. Of those, $95.2 million will be used for 20 ongoing capital projects, including the construction of 15 new schools and the renovation of five existing ones. There will also be $12 million used for relocatable classrooms and the creation of a new application-based minor capital renewal program.

A $1.6 billion increase in the Social Services budget. This includes increasing the Saskatchewan Income Support benefit by $30 a month, and the SIS shelter benefits by $25 a month. Another $20 million will be used to launch an Education and Training Incentive, with $11.5 million provided for the Saskatchewan Housing Benefit.

The budget sets aside $400 million for community-based organizations, with the government touting that the increase will address operation pressures for the organizations while allowing them to retain and recruit qualified staff.

The 10.8 percent increase in the budget for the protection of persons and property covers several organizations, including the ministries of Corrections, Policing and Public Safety, Justice and Attorney General, Integrated Justice Services, Labour Relations and Workplace Safety and the Saskatchewan Public Service Agency. This includes $1.6 million for the establishment of a warrant enforcement and suppression team to target high-risk offenders who have outstanding warrants.

Another $6.4 million will be used to set up the Saskatchewan Trafficking Response Team, $3.2 million for the expansion of the Crime Reduction Teams and $220,000 for the expansion of the Internet Child Exploitation Unit.

There is a plan to improve over 1,100 kilometres of provincial highways in the budget. This includes twinning of Highway 3 west of Prince Albert and improvements along Highway 5 east of Saskatoon. Planning and preconstruction of the twinning projects along Highway 6 and 39 near Regina and Weyburn are also included in the budget.

In terms of agriculture, the budget pointed out the strength of the sector, with $17.5 billion in agri-food exports last year. In addition, it was noted that there was a lot of private investment into Saskatchewan last year, including new and expanded canola crush facilities, wheat-based pulp plants and more.

The budget calls for clarifications to the PST as it relates to farming and agricultural activities. This includes the exemption for the on-farm digging of dugouts. There is also an investment of $31.8 million in agricultural research under the five-year federal-provincial Canadian Agricultural Partnership agreement. Crop insurance has $250 million budgeted, with the coverage per acre reaching an average of $405.

There are some tax changes included in the budget, primarily with the expansion of the PST. Effective October 1st, the PST will be applied to sporting events, concerts, museums, fairs, movies, gym memberships and more. There are exemptions for children’s activities, amateur events and events run by schools and non-profits. The change is expected to add around $21 million to the provincial revenues a year.

While the PST is being expanded to cover sporting events, concerts, and more, it will no longer be applied to e-books.

Another tax increase is for tobacco, with the tax going up by two cents per cigarette, eight cents per gram and 1.3 cents per stick of heat-not-burn products. This will take effect on March 24th and is expected to increase revenues by $12.1 million.

The budget also forecasts for a balanced budget by the 2026-27 fiscal year, with deficits continually shrinking until then. With the reduced deficit in this year’s budget, the province’s operating debt is now less than $10 billion.

A few assumptions were used in the calculation of the budget. First is the price of West Texas Intermediate (WTI) oil, which the budget forecasts to be $75.75 USD through the fiscal year. At the time the budget was delivered, the price of oil was sitting at $100.00. It also expects the price of potash to be at $407 USD per tonne, and an exchange rate of 80.04 cents USD.