Released on March 20, 1997
Saskatchewan's provincial sales tax will be cut from nine to seven per
cent, effective midnight tonight, Finance Minister Janice MacKinnon
announced today.
MacKinnon announced the $180 million tax cut and major new investments
in roads, health, education and social programs as she tabled the
Province's fourth consecutive balanced budget.
"These are the rewards of sound, careful management of the public
purse," the Minister said. "All these strategic investments and
benefits were made possible by Saskatchewan people their
determination, their hard work, their sacrifice and discipline.
"Our economy is strong and growing, our fiscal position is strong, and
we're paying down the public debt the mortgage on our children's
future. Now is the time to invest in people to build an even better
future."
The Minister said the Budget will continue the Government's commitment
toward a balanced approach in delivering fiscal benefits back to
Saskatchewan people. The Budget shows a balance between reducing
taxes, making strategic new investments in people, health and
education, and reducing the Province's long-term debt.
"Our promise is to invest wisely, and to safeguard our ability to
choose our own future."
The major new investments announced by MacKinnon include:
a $2.5 billion 10-year commitment to Saskatchewan roads and
highways, starting with $200 million in 1997-98;
$51 million in new funding to Saskatchewan health districts,
as part of a $1.6 billion total investment to continue
building a stable, secure health system;.
$13 million in new funding to Saskatchewan's award-winning
Action Plan for Children to fight child poverty, and to
provide a bridge until the start of the National Child Benefit
in 1998;
$22 million in new operating funding for Saskatchewan's
schools over the next two years and a 40 percent increase in
capital grants to build and renovate schools in 1997-98; and,
$14 million in special and capital funding for universities in
1997-98, and a commitment to replace federal operating cuts
dollar-for-dollar in the next two years to help keep tuition
fees affordable.
"People want government to focus on their priorities, to reflect
their values," said MacKinnon. "People want more than short-term
quick-fix schemes. They want government to make sound, long-term
investments and that's what we have done."
MacKinnon said that the "sustainable, responsible" provincial
sales tax cut follows previous personal and business income tax
cuts introduced by the government. She noted that this will help
create more jobs, the government's top priority.
"It's a tax cut that will benefit families right across the
province a tax cut that business people told us would do more
to create jobs than any other single measure.
"This tax cut proves that discipline and sound financial
management pays off."
Three other tax reduction measures were announced by MacKinnon:
the introduction of a sales tax rebate on building materials
and equipment for livestock and horticultural activities,
expected to create hundreds of jobs and help triple the
province's hog production by 2005;
the extension of the Manufacturing and Processing Investment
Tax Credit to include taxable used equipment to spur one of
the fastest-growing sectors of the Saskatchewan economy; and
a new sales tax exemption on certain medical devices, such as
glucose monitors, cholesterol testers and supports and braces
purchased by individuals.
The Minister added that the Government "remains committed to
living within our means and to the discipline of paying our bills
not leaving them to our children."
This year's Budget shows the Provincial debt, as compared to the
size of the economy, has been reduced to 49 per cent from 70 per
cent. By the year 2001, the total debt will be cut to 36 per
cent.
As well, by 2001, the Province's annual interest bill will fall
by $200 million as compared to 1995 money which can be
reinvested in Saskatchewan people.
MacKinnon said the Budget will give Saskatchewan people a strong
reason to feel an increasing confidence and optimism in their
future.
"This Budget shows our determination to keep our promises with
fairness and balance.
"It shows we can pay down debt. We can create prosperity and
jobs. We can cut taxes.
"We can do all these things and still enhance and strengthen
the social programs that make Saskatchewan the best place in the
world to live."
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For more information contact:
Ron Podbielski
Communications Director
Saskatchewan Finance
787-6578
