Released on March 26, 1999
Health care, tax cuts and debt reduction were the focus of the1999-2000 Provincial Budget, tabled today by Finance Minister Eric
Cline.
This year's budget targets $1.9 billion to health care, up
$195 million over 1998/99. It cuts the province's sales tax rate from
seven per cent to six per cent and targets $100 million to debt
reduction.
Cline said the Budget exemplifies Saskatchewan's balanced approach to
financial management.
"We continue to take a balanced and common sense approach to
management of the province's resources," Cline said. "Saskatchewan
people have clearly stated that they want to build on our investment
in health care. We're continuing to cut taxes we now have the
lowest sales tax rate of any province with a sales tax. And we've
taken nearly $3.4 billion off our debt since 1994."
In addition to the increased funding for health, the budget invests in
other priority areas with:
$235 million for highways up 7 per cent over last year's
budget;
a new $10 million provincial-municipal infrastructure
assistance program, to be matched by local funds, bringing
municipal revenue sharing to $66 million;
more than $1.0 billion for K-12 schools, post-secondary
education and skills training the largest investment ever;
and,
$218 million 8 per cent more than in 1998/99 to improve
the justice system and move forward on initiatives to deal
with violent crimes and repeat young offenders.
In addition to reducing Saskatchewan's sales tax rate from
seven per cent to six per cent, provincial personal income taxes
will be lowered by $30 million a year, resulting from the recent
federal tax changes.
"Since 1995, Saskatchewan's personal income taxes have been
reduced by more than 10 per cent for the average family.
Including today's tax cut, Saskatchewan's sales tax has been
reduced by 33 per cent in just three years, putting $300 million
a year back in the hands of families and businesses across the
province."
Cline also announced that the government will be reviewing
opportunities to re-design Saskatchewan's income tax system.
"We recently obtained the agreement of the federal government
that the provinces could re-design their own income tax systems
as early as the 2001 tax year," he said.
Cline noted that lower taxes also improve consumer and investor
confidence, providing solid support for economic growth and job
creation. While there are some challenges, Saskatchewan's
economy is expected to grow by 2.0 per cent in 1999 and by an
average of 2.4 per cent in the next three years. That builds on
an average economic growth in Saskatchewan between 1992 and 1997
of 4.3 per cent, which led the country.
Budget measures to further stimulate economic growth,
diversification and jobs include:
$17 million for agriculture research and development up
26 per cent from 1998/99;
increased support for northern and local economic
development;
funding for the new Petroleum Technology Research Centre in
Regina;
financial commitment to the Canadian Light Source
synchrotron project in Saskatoon; and
a doubling of the small business start-up and operating
assistance available through the Small Business Loans
Association program.
Cline noted that six straight years of balanced budgets have
helped bring down the province's public debt. By the year 2003,
Saskatchewan's total debt is projected to fall to $10.6 billion,
or 32.0 per cent of Gross Domestic Product (GDP).
"This is a dramatic improvement from 1994, when the debt peaked
at nearly $15 billion, or 66 per cent of GDP," Cline said.
"Saskatchewan people have told us debt reduction continues to be
a priority. They deserve a great deal of credit for their
commitment to pay down the debt. Their efforts mean more
financial freedom for all of us today and for our children and
grandchildren tomorrow."
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For more information, contact:
Sandra Lodoen
Saskatchewan Finance
Regina
Phone: (306)787-6578