REGINA: The Canadian Taxpayers Federation (CTF) is calling on the Saskatchewan government reverse tax increases in the last budget, in light of new revenue forecasts outlined in the province's mid-year update.

"It's clear that the across-the-board tax increases announced in Budget 2004 were unnecessary and they should be repealed in the next budget," said CTF Saskatchewan director David MacLean. "Those tax increases betrayed the electorate, now it's time for the province to reverse those decisions and make good on their commitment to taxpayers."

The province's mid-year update revises revenue projections $815 million upward, resulting in the possibility of the first balanced budget since 2001. The province announced plans to transfer $210 million to the province's Fiscal Stabilization Fund for future spending initiatives.

"Since 2001 the province has refused to acknowledge that they have been running deficits, while their own financial statements contradicted the politicians," said MacLean. "Now they are paving the way for more deception by transferring money into the phony stabilization fund - a practice condemned by the Provincial Auditor. This practice has to end, and the province should instead focus on permanent debt reduction in the interest of future generations."

The CTF takes exception to the province's watered down commitment to school tax reduction that calls for $110 million to be used to for school tax relief over four years.

"This school tax relief is totally inconsequential and lacking a long term strategy to deal with the issue" said MacLean. "For once we need a solid, long term commitment to relieving the school tax burden - particularly on rural residents. The amount dedicated to school tax relief in this document is a pittance."

"We need our province to seize upon this opportunity to make a lasting difference in this province. We need them to show that they can muster the courage to address the province's growing debt, and reverse decisions that penalized taxpayers in the last budget," said MacLean. "It's time for a new era of honesty in government, and a real commitment to reducing the tax burden for all Saskatchewan residents."