The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
The Saskatchewan government raised the provincial sales tax, hiked the price of cigarettes and beer, and slashed jobs to deliver a balanced budget yesterday. As of today, the PST on all retail purchases rises from six to seven per cent, a move the government promised would bring forth an additional $136 million in revenues. Also effective today, smokers will shovel out an extra 1.5 cents in taxes for every cigarette, tacking an extra 38 cents onto the cost of a pack of 25 smokes. Starting at midnight on April 24, the levy on bottled beer will increase by 26 cents per litre, which will raise the price of a 24-pack by just over $2. The budget also calls for the layoffs of as many as 500 provincial employees as well as belt tightening within various departments. In presenting the highly anticipated budget in Regina yesterday, Finance Minister Harry Van Mulligen insisted that these measures were needed to keep the province in the black as it diverts badly needed funds to schools and hospitals. "Preparing this budget called for difficult decisions to meet the public's demands for service, particularly in health care," he said in a statement. "This budget balances spending cuts and revenue initiatives with increased spending in priority areas." Those priority areas are primarily health care and education, which will receive over 90 per cent of the province's increase in spending. Health care will receive a $160 million increase, which will support projects such as the expansion of MRI and CT scan services, increasing the capability of the Cancer Agency, expanding renal dialysis capacity, and an additional $16 million for province's drug plan. "Saskatchewan people have told us quality health care is their number one priority," Van Mulligen said. Education spending will also rise this year by over $4 million, with the Department of Learning's budget to include slightly over $1.2 billion. The budget also contains several initiatives targeting Saskatchewan youth, including the Youth Entrepreneurs of Saskatchewan Program, a summer student program called the Green Team, the Centennial Student Employment Program, and an increased Post-Secondary Graduate Tax Credit. To stay out of the red, the province had to dip into its Fiscal Stabilization Fund, a rainy-day stash which Van Mulligen told reporters would be completely spent by 2005-06. See 'Budget' P.# Con't from P.# "We cannot live on savings indefinitely," he said. "We are committed to living within our means. We are committed to finding the greatest efficiency from every public dollar." The budget was met with strong criticism by the Opposition Saskatchewan Party, which called the new tax increases a "betrayal" of voters. Finance critic Ken Krawetz charged that the higher taxes will drive people out of the province and destroy jobs. Other revenue measures that will be implemented include: The annual farm rebate for retail gasoline purchases is eliminated retroactive to January 1st, 2004; Effective April 7th, 2004, the current Fuel Tax exemption on farm gasoline and propane will change to 80 per cent of all bulk purchases; Beginning in 2005, indexation of personal income tax brackets and credits will be modified annually to balance inflation protection for taxpayers with the government's fiscal pressures. Increasing the price of birth, death and marriage certificates from $20 to $25; Increasing annual fishing licenses from $25 to $30; Increasing the park entry fee from $42 to $50; Introducing a new $3 fee per night for firewood-burning permits at parks. Other budget highlights include: introducing a new General Revenue Fund four-year financial plan that the province says will generate a $42 million surplus over the next four years and meet the requirements of the provincial Balanced Budget Act; funding to the KidsFirst program for 60 new families to enter the pre-natal program and receive support; $24 million in capital improvements for K-12 schools and $16 million for post-secondary institutions; creating 200 new child care spaces; increasing the Child Benefit payments for single parents (the province did not provide a specific figure); an investment of $295 million to fix the roads, and build better highways; a further $10 million in revenue-sharing grants for municipalities, a 13 per cent increase over last year and the third $10 million increase in three years; $1 billion over five years in provincial support for the Agriculture Policy Framework and income support program; $12.6 million for affordable housing construction under the Provincial Housing Policy Framework; and $211 million in job training and creation.
