REGINA: The Canadian Taxpayers Federation is blasting Finance Minister Andrew Thomson for spending the province's fiscal stabilization fund (FSF) when government tax revenues have never been better.

In the February 27 edition of the Saskatoon Star Phoenix, Thomson is quoted saying the FSF will be drawn down by "several hundreds of millions of dollars in the [2007] budget." The FSF was established to serve as a "rainy day fund" by off-setting sudden revenue drops due to economic downturns.

"Guess what, Mr. Thomson," said CTF Saskatchewan director David MacLean. "It's not raining."

Between 2002 and 2006, government revenues have increased by 36 per cent.

"This money should be used to help the province get through tough times and not for getting politicians re-elected. No matter how you slice it, drawing down the fund increased the net-debt of the province. This government should be ashamed if they can't run a balanced budget during an historic boom," added MacLean, noting that the government has run deficits in three of the past five years.

FSF needs rules
In its 2007 pre-budget recommendations, the CTF called for a legislated framework governing how and when the FSF could be used and when it would be repaid. If implemented, the CTF plan would not allow the government to make withdrawals from the fund unless revenues declined by at least five per cent from the previous four-year, inflation-adjusted average.

"When politicians can't keep their hands out of the cookie jar in election years, it makes a strong case for implementing the CTF recommendation," said MacLean. "Politicians need to realize that, if used properly, the FSF could become a permanent trust fund - which would be a lasting legacy to be enjoyed by future generations."