Released on March 28, 1996
The 1996-97 provincial Budget shows how Saskatchewan will continuebuilding a future of prosperity and security through successfully
meeting the forces of change, Finance Minister Janice MacKinnon told a
news conference today.
MacKinnon said this year's Budget prepares Saskatchewan for the 21st
century by:
keeping jobs and economic growth a top priority;
protecting the province's core services from the detrimental
effects of federal transfer payment cuts;
streamlining government and delivering services better; and
continuing sound financial management through balanced budgets and
paying down debt.
"This Budget shows a solid plan that responds to the clear priorities
of Saskatchewan people," MacKinnon said. "In our public consultations,
we were told to help create jobs, protect our social programs, and
continue balancing the budget without any tax increases."
The 1996-97 Budget illustrates how the province will create more jobs
and prosperity by:
creating the Saskatchewan Trade and Export Partnership (STEP), a
unique business/government partnership to pursue new and expanded
trade and export opportunities;
investing up to $238 million over the next four years to diversify
and strengthen the agriculture and food industry;
supporting regional economic development;
continuing and expanding targeted tax incentives for business to
encourage job creation; and
continuing cuts in income taxes for Saskatchewan people.
"This income tax cut will put up to $150 in the pockets of individuals,
up to $300 into the budgets of dual-income families and inject up to
$55 million into the Saskatchewan economy," MacKinnon said.
This Budget also responds to the request of Saskatchewan people to
protect core public services from $114 million in direct federal cuts
in 1996-97.
"We have provided $110 million of new provincial funding to backfill
100 per cent of the federal cuts to health, social services and
operating funding for universities and federated colleges in the 1996-
97 Budget," MacKinnon said. "Our new Four-Year Financial Plan shields
our partners from the full impact of these federal cuts, which grow
every year until 1999-2000.
"This commitment will give our partners time to plan and adjust to the
challenges of the new century, as renewal of our health, education and
social programs continue."
The provincial government conducted a rigorous expenditure examination
of all departments and activities. Through cutting administrative
costs, eliminating duplication and overlap and delivering services
better, more than $50 million of savings are reflected in the 1996-97
Budget, as compared to 1995-96.
"These are savings for not only this year, but each and every year into
the future. This is funding that will be redirected to protect our
health, post-secondary education and social programs from federal
cutbacks."
MacKinnon said the province will balance its Budget for the second
consecutive year in 1995-96, and that the new Four-Year Financial Plan
presents four more balanced Budgets.
In addition, the new Four-Year Financial Plan offers sound financial
management through:
a drop in total government spending by $230 million in 1996-97
compared to 1995-96, a reduction of more than half a million
dollars a day;
a decrease in annual interest payments on government-purpose debt
by $100 million by 1999-2000; and
a debt reduction of $2.4 billion by 2000, as compared to 1994.
This will bring the total debt load down from 68 per cent of the
province's Gross Domestic Product to 44 per cent.
No other provincial government has reduced its debt load so quickly,
the minister said.
"It is important to remember how we will reach the goal of continued
balanced budgets," MacKinnon said. "It will not be through tax
increases. It will not be through slashing social programs. We will
achieve that goal by restructuring and streamlining government to lower
our operating costs. That's the approach the public asked us to take."
The minister said the Budget maintains promised tax reductions and
provides room for additional tax cuts down the road. "Just as we
consulted with Saskatchewan people about how to handle federal funding
cuts, we will consult them on how to best achieve further tax
reductions."
MacKinnon said Saskatchewan people can look forward to the 21st century
with a sense of confidence and security.
"They can have confidence because their future promises more jobs,
balanced budgets, reduced taxes and a declining public debt. They can
have security because the cornerstones of our quality of life -- our
health, education and social programs -- will be there for them, their
children and their grandchildren."
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For more information, contact:
Ron Podbielski
Finance
Regina
Phone: (306) 787-6578