This past January the CTF met with the Sask government to convey our recommendations for the 2012 budget.

Just like in 2011, one of our top recommendations was for the government to keep a better lid on spending. After all, since taking office in 2006-07, spending has increased by over 40% under the Wall government. We recommended capping spending for the combined rate of inflation and population growth, a review of the Crown Corps (especially the money-losing ones),  controlling public sector wages and moving away from balancing the budget off the backs of Crown Corporation profits.

On the bright side, we were pleased to give credit where credit was due and commend the government for several initiatives in the 2011 budget; school tax relief, reducing the small business tax, income tax relief and debt repayment to name a few examples.

You can view our recommendations by clicking here. One slide to note is number 12 as it rebuts the claim by some that Saskatchewan can't reduce taxes too much as Alberta did and they now have a revenue problem. You'll see that since 2005, had Alberta controlled spending for population growth and inflation (allowing 4.6% annual increases), it would have been in a $4.1 billion surplus position right now. Unfortunately for taxpayers in the province next door, their government really opened up the spending taps and now finds themselves staring at a $3.1 billion deficit for 2011-12.

As the Sask government continues to enjoy resource revenue riches, the key will be to control spending, pay down the debt, reduce taxes to more competitive levels and hopefully...put some money aside so that future generations can benefit as well.

By: Colin Craig
Posted: February 14, 2012
Topic: Saskatchewan

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