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Budget posts $2.6 billion deficit

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Published: April 15, 2021

The second pandemic budget released by the Saskatchewan government April 6 was billed as one to protect, build and grow the province as it goes through its worst economic shock since the Second World War.

Critics say it is adding to the debt without helping families and those out of work.

Finance minister Donna Harpauer said the province will run a $2.6-billion deficit this year on spending of $17.1 billion and revenue of $14.5 billion.

The spending includes about $1.5 billion in COVID supports and $3.1 billion in infrastructure spending. The debt is projected to rise by $4 billion to $27.76 billion.

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The NDP opposition said the Saskatchewan Party government lied during the last election campaign, knowing that it could not balance the budget by 2024.

“This budget takes the same approach as the government’s pandemic response: weak half measures that don’t get the job done for Saskatchewan people,” said NDP leader Ryan Meili.

The Saskatchewan Association of Rural Municipalities said commitments to infrastructure and economic stimulus are welcome in rural areas.

It highlighted the $200 million for the Accelerated Site Closure Program, which is a federal program to clean up abandoned oil and gas well sites, and $66 million for maintenance and upgrades to dams and canals.

The Rural Integrated Roads for Growth program budget was held at $28 million and a new short-line rail infrastructure program worth $530,000 was introduced.

The province also announced $1.4 million for a new STARS helicopter to service rural and remote areas, and a Community Rink Affordability program of $1.7 million to help with upgrades and repairs.

The highways budget totals $830 million. Major projects include: work to begin twinning Highway 3 west of Prince Albert; multiple passing lane projects on highways 2, 3, 12, 14 and 16; three sets of passing lanes on Highway 7 between Kindersley and the Alberta border; two sets of passing lanes and widening of Highway 5 between Saskatoon and Highway 2; and, completion of remaining passing lanes on Highway 39 between Corinne and Estevan.

Other projects include safety improvements at intersections and adding a second mowing along about 7,500 more kilometres of highway rights-of-way. Many rural highways should receive two cuts this year, the ministry says.

Both SARM and the Agricultural Producers Association of Saskatchewan highlighted $323 million in SaskTel spending to improve service.

“Growth and sustainability in rural Saskatchewan are priorities for SARM,” said president Ray Orb. “Reliable funding models, investments in infrastructure and tools for crime prevention and emergency care support these priorities.”

Other budget highlights include health spending of $6.5 billion, including a record $458 million for mental health and addictions and $6.7 million to reduce seniors’ ambulance fees. Education spending is up to $3.75 billion and social services and assistance is now $1.56 billion.

Meanwhile, agricultural property owners will pay an additional $8 million in education property tax because of the 2021 revaluation and introduction of new mill rates in the budget.

Taxable assessments of all properties went down except for agriculture so the new mill rates adjust for that. The mill rate for agriculture property drops from 1.43 to 1.36 but the total collected will still go up.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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