FUNDING AUTHORIZED FOR FARM AID

Released on March 6, 2000

Finance Minister Eric Cline today announced that $80 million in new funding has

been authorized through special warrants for this year's provincial

contribution to the farm aid package announced in February, along with a

further $10 million for 1999 enhancements to the NISA program.



"We are authorizing $80 million as the province's share of the $260 million

being provided by the Federal and Provincial Governments to help Saskatchewan

farmers complete their adjustment to the elimination of the Crow Benefit,"

Cline said. "We are also providing $10 million to enhance the NISA safety net

for our farmers, an enhancement that was announced last spring."



The $90 million is in addition to the $140 million previously approved for

Saskatchewan's participation in the national farm aid program (AIDA) and to the

$130 million the province spends annually on safety net programs.



"We have also worked very hard to contain input costs for our farmers," Cline

said. "Farm machinery and parts, fertilizer, pesticides, and seeds along with

livestock and horticultural facilities are all exempt from the Provincial Sales

Tax. Farm fuels have been subsidized in one form or another since 1939. The

various rebates and tax exemptions already in place leave approximately $260

million in the pockets of Saskatchewan farmers every year."



The $90 million represents more than 40 per cent of the $212.5 million in total

special warrant funding authorized for 1999-2000. Eleven different departments

received special warrant funding in 1999-2000, a decrease of five from the

previous year.



"This year's budget will remain balanced," Cline said. "We have done what we

said we would do in the past, and we will do so this time. I will provide a

revised fiscal update for this year when the budget is released on March 29th."



New spending is off-set in part by growth on the revenue side, reflecting the

fact that Saskatchewan is enjoying its longest period of sustained economic

growth since the 1970s. Saskatchewan's financial position is also stronger

than it was years ago, so the province is better positioned to withstand

spending pressures.



Above-average forest fire suppression costs required $47.3 million in

additional funding in 1999-2000. This was authorized in November, 1999 and was

therefore already reflected in the surplus forecast in the November, 1999 Mid-

Year Report.



Along with the $90 million in farm support, March special warrant allocations

included:



$46.5 million for Health primarily to cover increased expenditures in

Regina and East Central Health Districts, an additional contribution

for the operation of Canadian Blood Services, wage increases and

increased expenditures through the drug plan;



$11.9 million for Justice primarily to cover increased expenditures in

court services, adult corrections and registry and regulatory services;



$3.9 million to Municipal Affairs, Culture and Housing in part to

address carry-overs of disaster assistance claims from previous fiscal

years;



$2.2 million to Highways for improvements to northern airports; and,



$5.0 million to respond to needs in five other departments.



Cline noted more than three quarters of this year's special warrant funding was

for one-time emergency expenditures.



"We responded to people's needs in important areas like health and addressed

emergency situations such as the bad forest fire season in 1999 and the needs

of rural Saskatchewan. We will keep people's priorities firmly in mind as we

work toward finalizing the budget for the coming fiscal year."



-30-



For further information, contact:



Sandra Lodoen

Saskatchewan Finance

Regina

Phone: (306)-787-6578